One of the leading IT companies in India, Wipro, says that the next quarter will not do well. It predicts slow growth because its main customers, including banks and other financial institutions in the United States, are reducing their expenses. The main reason for this is uncertainty in the global economy.
As a consequence, there has been a 2.4% decline in Wipro’s stock price on the New York Stock Exchange. Further, it disclosed that the results for the just-ended quarter were not as satisfactory as expected. But at the same time, it announced a major stock buyback valued at up to ₹150 billion.
The CEO of Wipro, Srini Pallia, explained that global issues, including geopolitics, are affecting government policies and making it harder for the company to do business. Pallia further added that customers have become more cautious and only fund initiatives that produce tangible results.
Wipro anticipates revenues for the upcoming quarter in the range of $2.60 billion to $2.65 billion. This forecast indicates either a marginal drop-off or no change in its previous quarter’s performance. This is seen by experts as an indication of persistent indecision and delays in project launches.
Wipro’s revenues increased 7.7% to ₹242.36 billion in the fourth quarter; however, it failed to meet market expectations for growth. Moreover, its net income fell 1.9% to ₹35.02 billion, slightly below projections. The overall value of its contract wins came in at $3.5 billion for the quarter under review, a marginal increase over the previous quarter, although less than $4 billion was won a year earlier.
