Infosys logo

INFY - Infosys News Story

$18.16 0.3  1.6%

Last Trade - 14/05/21

Sector
Technology
Size
Large Cap
Market Cap £54.09bn
Enterprise Value £52.08bn
Revenue £9.73bn
Position in Universe 166th / 6846

Wipro shares fall nearly 7% as organic growth, revival plan disappoint

Wed 14th October, 2020 7:12am
By Sethuraman N R
    BENGALURU, Oct 14 (Reuters) - Shares of Wipro Ltd  WIPR.NS 
fell 6.8% on Wednesday, a day after the software services firm
posted quarterly organic revenue growth that was lower than
peers and disappointed some investors with its plans to revive
growth.
    Chief Executive Officer Thierry Delaporte, who took the helm
in July, said on Tuesday Wipro would focus more on large deals
and "prioritize the markets and sectors that are relevant,"
without giving more details. 
    The commentary let down some investors who were hoping for
more concrete steps from a company that has underperformed its
rivals in the recent past. 
    "The strategic roadmap from the CEO to revive growth was not
as strong as it was expected to be," IDBI Capital research
analyst Urmil Shah said.
    Wipro also saw a decline in revenue from its key markets of
the Americas and Europe in the second quarter as clients cut
spending, but some new deals helped to keep overall revenue
largely flat at 151.15 billion rupees ($2.06 billion).
 urn:newsml:reuters.com:*:nFWN2H312C
    "Organic growth was down 4.5% year-on-year, lower than
Accenture Plc  ACN.N  (down 3%) and Tata Consultancy Services
Ltd  TCS.NS  (down 3.2%)," AMP analysts said.
    Quarterly profit also fell and missed analysts' estimates. 
    Wipro said it expects revenue at its IT services business to
be in the range of $2.02 billion to $2.06 billion in the
December quarter, lower than the $2.09 billion it earned a year
earlier. 
    The company approved a 95 billion rupees share buyback at
400 rupees per share.
    "While the quantum of buyback was largely in line with our
expectations, the buyback price was a disappointment," ICICI
Securities said in a note.
    Wipro shares were set for their biggest one-day percentage
loss since April in a weak broader market, while rival Infosys
Ltd  INFY.NS  was down 0.2% ahead of quarterly results later in
the day. 
    


($1 = 73.3970 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by Aditya
Soni)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.