Noida, Apr 17 (APAC Media): Shares of Wipro Ltd fell more than 3 percent on Friday after the company reported a subdued performance for the fourth quarter and issued a cautious outlook for the near term, dampening investor sentiment.
Shares of Wipro Ltd slipped 2.55 percent to Rs 204.84 on the BSE at 10:58 AM in intraday trade. On the NSE, the stock was down 2.56 percent at Rs 204.89.
The stock slipped in early trade following the earnings announcement, reflecting concerns over growth visibility amid a challenging demand environment for the IT services sector.
For the quarter ended March, Wipro reported a mixed set of numbers. While margins came in slightly ahead of expectations, revenue growth lagged estimates, raising concerns among analysts about the company’s ability to accelerate business momentum.
The company’s IT services segment, a key revenue driver, continued to face pressure due to delays in client decision-making and slower ramp-up of deals.
Adding to the cautious mood, Wipro guided for a sequential revenue growth in the range of -2 percent to 0 percent in constant currency terms for the June quarter. The weak guidance signalled that demand conditions remain uncertain, particularly in key markets such as North America and Europe.
Brokerages offered a divided view on the stock following the results. Some analysts flagged persistent execution challenges and limited visibility on near-term growth as key risks, while others pointed to stable margins and cost discipline as supportive factors.
The company also announced a share buyback worth Rs 15,000 crore at a price of Rs 250 per share, representing a premium to the current market price. Analysts believe the buyback could provide some downside support to the stock in the short term and enhance shareholder returns.
However, market participants cautioned that the buyback does not fully offset concerns regarding growth and demand softness. Many believe sustained improvement in deal wins and execution will be critical for any meaningful re-rating of the stock.
Overall, sentiment around Wipro remains cautious, with investors closely monitoring signs of recovery in demand and the company’s ability to navigate ongoing macroeconomic uncertainties.
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