INSUBCONTINENT EXCLUSIVE:
Moreover, its second quarter guidance remained lukewarm amid modest addition of clients
Which means investors may have to wait a little longer to witness a meaningful turnaround
exporter based on quarterly revenue.
Wipro had earlier expected a drop in the June quarter revenue due to divestment of hosted data centre
services segment in March 2018, wherein it transferred eight data centers and over 900 employees to the US-based Ensono for a consideration
of $405 million.
Accordingly, it had guided for a dollar-denominated revenue between $2,015 million and $2,065 million for the June quarter,
implying a change of -2.3 per cent to 0.2 per cent sequentially
margin (EBIT margin) rose sharply by 280 basis points (bps) from the previous quarter to 17.2 per cent due to oneoff items including the
gain of Rs 2,529 crore from the sale of its data centre business to Ensono in the June quarter and the impact of insolvency of a customer
and impairment loss on one of the acquisitions in the previous quarter.
Wipro has been lagging its bigger peers Tata Consultancy Services
(TCS) and Infosys when it comes to the year-on-year growth in the trailing 12 months (TTM) dollar-denominated revenue for the past 12
quarters.
For a lot of investors, the biggest concern is that the scenario may not change any time soon going by its progress on the client
addition, growth in segment-wise revenue and its own prognosis of the growth in the September quarter.
The total number of active clients
increased by just over 10 to 1,254 from the year ago.
