Mixed demand environment could impact Q3 revenue growth: Wipro

A "mixed demand environment" could add to the woes of Wipro in the third quarter, considered to be the weakest for the software sector, impacting revenue growth of the country's third-largest IT firm. Wipro has guided its IT revenues to be in the range of $ 1,916 million (around Rs 12,836 crore) to $ 1,955 (around Rs 13,095 crore) million for the quarter ending December 31.

This would translate into a growth of 0-2 % from the IT revenues of $ 1,916 million posted in the July- September quarter. "As we look forward, the demand environment is mixed in a seasonally weak quarter affected by furloughs and lower number of working days," Wipro Chief Financial Officer Jatin Dalal said. Traditionally, the third quarter of the fiscal is weak for the Indian IT companies on account of fewer working days and holidays in two of its largest markets, the US and Europe.

Wipro's growth guidance is on similar lines as that of its larger rivals, Tata Consultancy Services and Infosys. TCS and Infosys posted muted numbers for the second quarter and said they were witnessing softness in the banking and financial services sector and client spending. Infosys slashed its revenue guidance for the second time this year to 8-9 %

However, HCL Technologies, which also announced its second quarter results today, exuded confidence in meeting its annual outlook of 12-14 % growth on constant currency basis. While industry body Nasscom is yet to revise its export revenue growth guidance of 10-12 % for 2016-17, it has indicated that it may firm up its views if a revision is required by October-end or November.