Wipro’s March quarter earnings prompted a negative response from Jefferies, which described the performance as weak and the guidance as lacklustre. The company’s US-listed ADRs fell nearly 3% following the results. Wipro’s fourth-quarter revenue growth was just 0.2% quarter-on-quarter in constant currency terms, near the lower end of guidance.
Jefferies expressed concern over Wipro’s outlook for the June quarter, projecting revenue growth between 0% to -2% quarter-on-quarter in constant currency. This guidance factors in contributions from recent deals and acquisitions, suggesting potential further declines in the organic business.
The earnings miss was attributed to softness in core segments, with the BFSI vertical declining 1.3% and healthcare falling 4.4%. Although the technology vertical grew 5.3%, it was not enough to counteract broader weaknesses. Wipro’s operating margins remained stable at 17.2–17.3%, slightly below estimates.
Jefferies noted a slowdown in deal momentum, with total bookings down 11% year-on-year in constant currency. Wipro announced a Rs 15,000 crore buyback at Rs 250 per share, but Jefferies maintained an ‘underperform’ rating with a price target of Rs 180.
