Wipro sees U.S. election, Brexit slowing Q3 revenue growth | Reuters

By Arathy S Nair and Sankalp Phartiyal | BENGALURU/MUMBAI BENGALURU/MUMBAI Indian software company Wipro Ltd gave a gloomy revenue growth outlook for the current quarter, citing global political uncertainties and seasonal issues such as furloughs and a reduction in working days.Wipro, India's third-largest software services exporter, said it expected revenue from its information technology services business for the quarter ending Dec. 31 in a range between $1,916 million, roughly flat, and $1,955 million, up 2 percent over the quarter to Sept 30.'Q3 always seasonally is a quarter where there are certain headwinds which come up and that creates a level of uncertainty,' said chief executive Abidali Z. Neemuchwala.'Also as you know, both the U.S

Reuters October 21, 2016 22:00:06 IST
Wipro sees U.S. election, Brexit slowing Q3 revenue growth
| Reuters

Wipro sees US election Brexit slowing Q3 revenue growth
 Reuters

By Arathy S Nair and Sankalp Phartiyal
| BENGALURU/MUMBAI

BENGALURU/MUMBAI Indian software company Wipro Ltd gave a gloomy revenue growth outlook for the current quarter, citing global political uncertainties and seasonal issues such as furloughs and a reduction in working days.Wipro, India's third-largest software services exporter, said it expected revenue from its information technology services business for the quarter ending Dec. 31 in a range between $1,916 million, roughly flat, and $1,955 million, up 2 percent over the quarter to Sept 30."Q3 always seasonally is a quarter where there are certain headwinds which come up and that creates a level of uncertainty," said chief executive Abidali Z. Neemuchwala."Also as you know, both the U.S. elections and Brexit have (created) a level of uncertainty."Neemuchwala also said the company was "cautiously optimistic about the next two to three quarters."

Wipro's muted forecast echoes the cautious business outlook given by larger rivals.Earlier this month, top software exporter Tata Consultancy Services Ltd reported lacklustre revenue growth, while second biggest rival Infosys cut its annual revenue growth guidance for the second time in three months.In its fiscal second quarter, Wipro reported a 7.6 percent drop in profit on higher employee costs, even though it topped analysts' expectations.

Consolidated net profit fell to 20.7 billion rupees ($310 million) for the three months ended Sept. 30, from 22.41 billion rupees a year earlier, it said in a statement. Analysts had, on average, expected a 19.72 billion rupee profit, according to Thomson Reuters data.IT services revenue rose 4.6 percent to $1.92 billion and the company added 47 new clients in the quarter.

Before the results, Wipro shares closed 0.77 percent higher in a broader Mumbai market that ended slightly lower. Wipro's smaller rival HCL Technologies painted a rosier outlook on Friday, saying it was optimistic that newer areas would drive technology spending.($1 = 66.8679 Indian rupees) (Additional reporting by Arnab Paul in Bengaluru; Editing by Amrutha Gayathri/Ruth Pitchford)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Indian economy in recovery mode from COVID-19 crisis, says World Bank president David Malpass
Business

Indian economy in recovery mode from COVID-19 crisis, says World Bank president David Malpass

Malpass also said that India, which faces huge challenges of integrating more people into the formal sector economy and raising the earnings of the people, has made some progress but that's not enough.

India stares at energy crisis with coal stocks down to days
India

India stares at energy crisis with coal stocks down to days

The shortages have stoked fears of potential black-outs in parts of India, where 70 percent of power is generated from coal

India becoming $5 trillion economy by 2025 'impossible' due to COVID-19 pandemic, says ex-RBI governor C Rangarajan
Business

India becoming $5 trillion economy by 2025 'impossible' due to COVID-19 pandemic, says ex-RBI governor C Rangarajan

India indeed needs a faster rate of growth to make up for the loss of output in the previous two years from the trend rate and must lay the foundation for faster growth in this year itself, the economist said