Wipro, India's fourth-largest IT services company, exceeded expectations by reporting higher third-quarter revenue on Friday. The increase was supported by notable growth in its banking, financial services, and insurance (BFSI) segment as well as in the Americas region.
During the three months ending in December, consolidated revenue rose by 0.5% to 223.19 billion rupees ($2.58 billion), slightly surpassing analysts' average projection of 222.28 billion rupees, according to data compiled by LSEG.
The company, headquartered in Bengaluru, saw its net profit climb by 24.5% to 33.54 billion rupees, outperforming analysts' forecast of 30.7 billion rupees.
Wipro anticipates a revenue growth range of -1% to 1% for the March quarter and solely provides a sequential forecast. The company had an order book of $3.5 billion in the third quarter, with deals exceeding $30 million totaling $961 million.
India's $254 billion IT services sector has encountered sluggish growth for consecutive quarters due to global economic uncertainties and rising inflationary pressures, prompting clients to curtail expenditures.
The forthcoming business-friendly policies of the incoming U.S. President Donald Trump administration are expected to benefit Indian IT firms, as the U.S. serves as the primary revenue source for the sector's leading companies.
Wipro's major competitors, Tata Consultancy Services, Infosys, and HCLTech, noticed an uptick in discretionary spending in the quarter.
In Mumbai, Wipro's shares concluded 2.45% lower before the announcement of the results.
($1 = 86.5770 Indian rupees)