Wipro Q4 result raises uncomfortable questions about its revenue growth

Mumbai: Just when it was thought Wipro Ltd had recovered from its growth problems, its March quarter (Q4) results have once again raised uncomfortable questions about revenue growth.

Revenue growth slowed just two quarters after acceleration. The sequential constant currency revenue growth stood at just 1% in Q4. In the previous two quarters it grew in the range of 2-3%. This is in contrast to the revenue acceleration theme investors are banking on.

Year-on-year growth rate declined marginally last quarter, unlike its peers, where growth rates had increased last quarter. As was the case with Tata Consultancy Services Ltd (TCS) and Infosys Ltd, Wipro said it is seeing strong deal momentum and has a healthy pipeline, which should help it deliver better FY20 than FY19. However, mere 5.4% growth in FY19 means the bar is not high. TCS and Infosys clocked 11.4% and 9% growth, respectively, in FY19.