Wipro deal wins plunge to near four-year low, deepening turnaround worries
WIT•Wipro’s quarterly contract value bookings fell to $2.6 billion from $4.7 billion a year earlier, an almost four-year low. It forecast third-quarter revenue of $2.57 billion to $2.63 billion after second-quarter profit fell 1.5% to 32.01 billion rupees.
1. Bookings fall sharply
Wipro’s total contract value bookings fell to $2.6 billion in the quarter ended September 30, from $4.7 billion a year earlier, reaching an almost four-year low. Indsec Securities analyst Rishubh Vasa said the company’s ability to win new business had weakened over the past two to three quarters and that its order book was under stress.
2. Revenue outlook and results
Wipro forecast third-quarter revenue of $2.57 billion to $2.63 billion, implying a decline of roughly 1.5% to growth of 0.5%; seasonal furloughs would weigh on performance, CEO Srinivas Pallia said. Second-quarter revenue rose 9.1% to 247.53 billion rupees, slightly above analysts’ average estimate, while net profit fell 1.5% to 32.01 billion rupees, below expectations, hurt by higher wage and subcontracting costs.
