Wipro Shares Drop on Weak Q3 IT Services Forecast


Summary: Shares of India’s Wipro fell premarket after the company predicted a decline in third-quarter IT services revenue.

Wipro, the fourth-largest IT services provider in India, experienced a 3.8% drop in shares during premarket trading due to its forecast of a decline in third-quarter IT services revenue. The Bengaluru-based company also reported an unexpected decrease in second-quarter revenue compared to the previous year. This news comes as a setback for Wipro as it faces challenges in maintaining its financial performance. It remains to be seen how the company will navigate the obstacles in the coming months.
Wipro’s second-quarter revenue amounted to 225.16 billion rupees ($2.70 billion), down from the previous year. This decline has raised concerns among investors and analysts about the company’s growth prospects. The IT services industry has been facing various challenges such as the global economic slowdown and the impact of the COVID-19 pandemic, which have affected demand for IT services. As Wipro prepares for the third quarter, the company will need to find ways to mitigate these challenges and regain growth momentum.

The decline in Wipro’s shares prior to the market opening indicates the market’s negative sentiment towards the company’s future performance. Investors and analysts will be closely monitoring Wipro’s actions and strategies to address the declining revenue and regain investor confidence.

Tags: Wipro, IT services, third quarter, revenue decline, market sentiment