Wipro Reports $2.6 Billion Revenue in December Quarter
Wipro announced its financial results for the December quarter, revealing revenue of $2.6 billion. This figure represents a sequential increase of 1.2% from the previous quarter. Year-on-year, the company saw a marginal rise of 0.2%.
In constant currency terms, Wipro's revenue grew by 1.4% sequentially. However, it declined by 1.2% compared to the same period last year.
CEO Srini Pallia Highlights Growth Drivers
Wipro CEO Srini Pallia provided insights into the company's performance. He noted that excluding the impact of the Harman DTS acquisition, revenue grew 0.6% sequentially in constant currency terms.
"Growth was broad-based," Pallia said. "Three of four markets and four of five sectors reported sequential gains."
He detailed specific market performances:
- Americas 1 delivered both sequential and year-on-year growth, driven by strong performance in healthcare, consumer, and Latin America.
- Americas 2 experienced a sequential decline.
- Europe grew sequentially in Q3, led by the ramp-up of a previously announced mega deal.
- BFSI continues to show strong traction with ramp-ups and new wins.
Key Financial Metrics and Acquisition
Wipro completed the acquisition of the digital transformation solutions business unit of Harman, a Samsung company, for $375 million.
Operating margins for the quarter stood at 17.6%. This represents an expansion of 40 basis points sequentially over adjusted September quarter margins. Year-on-year, margins expanded by 10 basis points.
The company closed a total contract value of $3.3 billion during the quarter. This included $871 million in large deal bookings.
Q4 Forecast and Market Outlook
For the quarter ending March, Wipro forecast sequential IT services revenue growth of 0% to 2% in constant currency terms. This reflects cautious optimism amid a muted demand environment.
Tech Mahindra Posts $1.6 Billion Revenue in Q3
Tech Mahindra reported revenue of $1.6 billion for the December quarter. This marks a sequential increase of 1.5% and a year-on-year rise of 2.7%.
In constant currency terms, revenue grew 1.7% quarter on quarter and 1.3% year on year.
CEO Mohit Joshi on Performance and Strategy
Tech Mahindra CEO Mohit Joshi commented on the quarter's results. "The third quarter delivered a strong performance," he said. "Most of our targeted market segments contributed meaningfully."
Joshi emphasized that deal momentum remained robust throughout the quarter. "We secured a strategic, multi-year engagement with a leading European telecom provider," he noted. "This represents one of the largest wins in our history."
He also highlighted the company's focus on artificial intelligence. Joshi stated that all large deals are now AI-infused. The company is working towards separating pricing for human and digital labour. This potential pricing model may be based on token consumption, supported by a Forrester white paper.
Comparative Analysis and Industry Context
Both Wipro and Tech Mahindra demonstrated resilience in a challenging market. Wipro's broader revenue base contrasts with Tech Mahindra's focused growth in specific segments.
The IT sector continues to navigate global economic uncertainties. Companies are leveraging acquisitions and AI integration to drive future growth.
Investors and analysts will closely monitor the upcoming quarters. The forecasts from both companies indicate a cautious yet proactive approach to market dynamics.
