By Reuters | Updated: 19 October 2023
BENGALURU, Oct 19 (Reuters) – Shares of Wipro (WIPR.NS) dropped to a three-month low and weighed on other Indian IT companies on Thursday after the country’s fourth-largest IT services provider forecast the slide in IT services revenue would get worse this quarter.
Shares of Wipro, which also posted an unexpected drop in revenue in the July-September quarter, fell as much as 4.3% in their steepest intraday percentage decline since mid-April. The Nifty IT index (.NIFTYIT) dropped 0.5%.
While the IT sector has been contending with soft demand for the past few quarters, leading to the likes of Infosys (INFY.NS) cutting its full-year forecast, analysts believe Wipro’s higher exposure to consulting hurt it more than its peers.
“Given Wipro’s broader presence in the discretionary areas, the conversion is a challenge as enterprises are cautious and are reprioritising expenditures,” Motilal Oswal said in a note.
While the IT sector has been contending with soft demand for the past few quarters, leading to the likes of Infosys (INFY.NS) cutting its full-year forecast, analysts believe Wipro’s higher exposure to consulting hurt it more than its peers.
“Given Wipro’s broader presence in the discretionary areas, the conversion is a challenge as enterprises are cautious and are reprioritising expenditures,” Motilal Oswal said in a note.
($1 = 83.2500 Indian rupees)
© Thomson Reuters 2023
