Wipro

Wipro posted a very disappointing set of numbers for Q2FY17, more muted than expected. But what really irked the market was the lowering of revenue guidance. For Q3FY17, the company expects revenue from its IT services business to show a growth of a 0 to 2%, lower than expectations of 1 to 3%.  

For current Q2, consolidated revenue rose 1.5 % (QoQ) at Rs.13,897 crore and net profit rose by a meagre 0.9% (QoQ) at Rs.2070 crore.  The rise in dollar revenue was also pretty disappointing, down 0.8% at $1916 million. This was more or less towards the top end of the guidance of 1% growth given by the company.  Its IT services EBIT rose less than even 0.5% at Rs.2337 crore with margins constant at 17.8%.

In terms of verticals, Healthcare, life science and services showed a sequential growth of 4%, Natural resources and utilities rose 1% while the digital ecosystem contributed 20% to the total revenue and consulting contributed 5%.  In terms of geographies, America showed a 2% growth, Europe rose 0.3% Asia-Pacific declined 0.1% while Middle East and India fell 1%.