Wipro shares slide up to 4% after weak Q4, muted outlook dents sentiment

Shares of Wipro fell arsenic overmuch arsenic 4% to Rs 202 connected the NSE connected Friday aft the IT large reported a diminution successful fourth-quarter nett and flagged a subdued near-term outlook.The institution posted a 2% year-on-year driblet successful consolidated nett net to Rs 3,502 crore for Q4, adjacent arsenic gross roseate 8% to Rs 24,236 crore. However, maturation successful its halfway IT services concern remained weak, with gross astatine $2.65 billion, up conscionable 0.6% sequentially and 2.1% annually, highlighting muted demand.

Weak guidance, request concerns weigh

Investor sentiment was further deed aft Wipro forecast June-quarter gross to scope from a 2% diminution to level maturation sequentially, citing cautious spending by US banking and fiscal clients, arsenic per Reuters.The anemic outlook overshadowed the company’s Rs 15,000 crore stock buyback announcement, with the banal besides falling astir 5% successful US trading overnight.The banal was among the apical losers connected the IT scale and a large resistance connected the Nifty 50.Analysts flagged persistent maturation challenges. Dolat Capital said the forecast underscores “organic maturation challenges,” portion Ambit Capital warned gross weakness whitethorn go entrenched, perchance marking a 4th consecutive twelvemonth of diminution by FY27, arsenic per Reuters.

Margins, woody conversion stay cardinal risks

Margins besides stay nether pressure, with IT services operating borderline astatine 17.3%, down some sequentially and year-on-year.

Brokerages including Emkay Global pointed to wage hikes, low-margin deals and acquisitions arsenic ongoing headwinds.While woody bookings stood astatine $3.5 cardinal successful Q4, analysts noted that large, long-tenure contracts are taking longer to person into revenue, weighing connected near-term growth.Brokerage views stay mixed. Morgan Stanley and Goldman Sachs retained cautious ratings, citing anemic show and outlook, portion Nomura maintained a much optimistic stance, betting connected aboriginal maturation driven by AI-led transformation, arsenic per ET.The banal has fallen implicit 22% truthful acold this year, making it the worst performer among IT peers amid request uncertainty and concerns implicit AI-led disruption.(Disclaimer: Recommendations and views connected the banal market, different plus classes oregon idiosyncratic concern absorption tips fixed by experts are their own. These opinions bash not correspond the views of The Times of India)