BENGALURU (Reuters) -India’s fourth-largest IT services provider Wipro reported a surprise drop in second-quarter revenue as clients curtailed spending amid global economic uncertainty and inflationary pressures.
The Bengaluru-based company’s consolidated revenue from operations declined 0.1% to 225.16 billion rupees ($2.70 billion) for the three months to Sept. 30, from a year earlier, against estimates of a rise to 228.10 billion rupees, according to LSEG data.
The Indian IT services sector has been contending with soft demand for the last three quarters as clients delayed deal-making decisions or are outright cutting back on expenditure.
Businesses are reducing spending on discretionary IT projects amid steep inflation that has resulted in higher interest rates.
Last week, industry leader TCS blamed an uncertain macro environment for its revenue miss, while India’s No. 2 IT services exporter Infosys trimmed the top-end of its full-year revenue guidance.
Consolidated net profit at the company fell to 26.46 billion rupees in the quarter, from 26.59 billion rupees a year ago.
Analysts had expected a profit of 31.02 billion rupees, as per LSEG data.
($1 = 83.2420 Indian rupees)
(Reporting by Varun Vyas and Indranil Sarkar in Bengaluru; Editing by Sonia Cheema)
