Wipro Q3 results review, ICICI Direct

Wipro Ltd. reported weak Q3 results on the revenue front.

In constant currency, IT services business reported revenue growth of 0.2% QoQ to $2803.5 million while CC growth was at 0.6%. Rupee revenues grew 3.1% QoQ to Rs 23,056 crore. IT products business reported revenue of Rs 172 crore for the quarter, up 37.8% QoQ.

Wipro indicated that revenue growth in this quarter was impacted by higher furloughs and lower discretionary spend.

Vertical wise, in CC terms, health (12% of mix), energy (11% of mix), consumer (19% of mix) and manufacturing (7% of mix) reported growth of 4.7%, 2.8%, 0.6% and 0.6%, respectively, while banking, financial services and insurance (35% of mix), communications (5% of mix) and technology (11% of mix) declined 0.2%, 2.6% and 1.3%, respectively.

Geography wise, in CC terms Europe (29% of mix) reported growth of 2.4% QoQ while America 1 (29% of mix), America 2 (31% of mix) and Asia Pacific/Middle East/Africa (11% of mix) reported growth of 1.3%, down 0.9% and down 1.2%, respectively. The growth in Europe was contributed by the markets of UK, Ireland, Germany and Nordics region while America1 growth was led by communication, which grew over 14% YoY. Bloomerg