Wipro ADR down 8% on NYSE days after Q3 print; PAT, revenue down across segments
Days after the announcing the October-December quarter results for fiscal 2023-24 (Q3FY24), the share price of information technology (IT) major Wipro witnessed a sharp decline in its American Depository Receipts on the New York Stock Exchange (NYSE) on Tuesday, January 16.
Wipro ADRs crashed by eight per cent on NYSE to $5.775 per cent as of 9:40 pm (India) on Tuesday. The Azim Premji-backed firm reported a consolidated net profit of ₹2,694 crore, a mere one per cent sequential jump, while registering a 12 per cent decline on a year-on-year (YoY) basis.
Also Read: Wipro Q3 result: Revenue from operations, profit decline YoY, announces dividend – 10 key highlights
American Depositary Receipt (ADR) serves as a tool for foreign companies to trade on US stock markets, just like regular shares of US companies. An American Depository Receipt is similar to a special certificate issued by a US bank.
The revenues of Wipro came in at ₹22,205 crore in the December quarter, indicating a 4.4 per cent decrease compared to the revenue of ₹23,229 crore reported in the corresponding period last year. In constant currency (CC), revenue dropped by 1.7 per cent sequentially and 6.9 per cent YoY.
The company expects revenue from its IT services business segment to be in the range of $2,615 million to $2,669 million. This translates to sequential guidance of -1.5 per cent to +0.5 per cent in CC terms. The IT services segment revenue in CC terms came in at $2,656.1 million in Q3 FY24, a decrease of 1.7 per cent quarter-on-quarter (QoQ)and six per cent YoY.
In Q3 FY24, Wipro’s total bookings came in at $3.8 billion in CC, marking a slight 0.2 per cent QoQ increase but reflecting a notable 13.5 per cent YoY decline. The large deal bookings stood at $0.9 billion in Q3 FY24, showing an 8.3 per cent YoY decrease.
Total Bookings refers to the total contract value (TCV) of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Large deal bookings consist of deals greater than or equal to $30 million in total contract value, according to the company.
“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded 20% year-to-date growth. Further, we are starting to see early signs of a return to growth in consulting, as demonstrated by the double-digit growth in order bookings in our Capco business,” said Thierry Delaporte, CEO and Managing Director of Wipro.
On Tuesday, January 16, shares of Wipro settled 1.93 per cent lower at ₹485 apiece on the BSE.
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Published: 16 Jan 2024, 09:41 PM IST
