– Wipro, Aether, Tech Mahindra among 40 companies reporting earnings today. – Wipro expected to report 1.0% revenue decline QoQ due to regional weaknesses. – IT sector forecasted to benefit from improved technology spending in 2025. – Seasonal furloughs may impact Q3 results, but macro conditions are improving.
Key Earnings Announcements
On Friday, January 17, numerous companies will release their quarterly earnings, including Wipro, Aether, and Tech Mahindra among over 40 listed firms. The full list encompasses entities from various sectors, highlighting the breadth of financial disclosures scheduled for today.
Expected Performance of Wipro
Wipro is anticipated to face a slight revenue decline of 1.0% QoQ on a constant currency basis for Q3 FY25, primarily driven by weakness in Europe, Communications, and Manufacturing sectors. Seasonal factors such as furloughs and fewer working days have been cited as contributing factors to this downturn.
IT Sector Outlook
Despite Wipro’s challenges, the overall IT sector is projected to initiate a recovery phase that began in the first half of FY25. Market analysts indicate an expected improvement in technology spending throughout 2025, signaling a potential rebound beyond just the US Banking, Financial Services, and Insurance (BFSI) domains.
Seasonal Adjustments and Recovery Prospects
While seasonal furloughs are expected to negatively impact earnings for the IT sector in Q3, there are signs that macroeconomic conditions are easing. This suggests a more favorable outlook for technology spending in calendar year 2025.
In conclusion, as multiple companies declare their earnings, Wipro is predicted to experience a minor revenue decline driven by seasonal and regional factors. However, the broader IT sector demonstrates potential for recovery with improved spending expected in the near future, indicating positive prospects beyond current challenges.
Original Source: www.livemint.com
Leave a Reply