Wipro Q3 Results: Fourth quarter revenue growth seen between 0% to 2%; margins miss expectations

IT services provider Wipro Ltd

. expects constant currency revenue growth for the January - March quarter to be between 0% to 2%.

Analysts had pegged the guidance to be between 1% to 3% or 1.5% to 3.5%, which would have included 200 basis points from the Harman acquisition.

IT services revenue during the quarter stood at $2,635.4 million, a growth of 1.2% sequentially on a constant currency basis. The company had pegged the growth to be between a negative 0.5% to positive 1.5% in constant currency terms, while analysts had pegged the figure to be at 1.6%.

Revenue in rupee terms stood at ₹23,378 crore, lower than the CNBC-TV18 poll of ₹23,549 crore, and higher by 3.3% on a sequential basis.

EBIT for the quarter declined by 5.5% from the September period to ₹3,573.5 crore, lower than the CNBC-TV18 poll of ₹3,883 crore. Margins narrowed to 15.3% from 16.7% quarter-on-quarter, and also missed the CNBC-TV18 poll of 16.5%.

Large deal Total Contract Value stood at $871 million during the quarter, while analysts from Kotak had pegged the figure to be around $2 billion, supported by pursuing large deals.

Shares of Wipro ended 2.5% higher on Friday ahead of the results announcement at ₹266.8. The US-listed shares of the company have slumped over 3% after the results announcement.