BENGALURU: The Sept quarter results of IT majors Infosys and Wipro revealed signs of promising growth in their mainstay BFSI businesses. Clients, however, remain prudent when it comes to discretionary spending, suggesting that overall market sentiment is still guarded.
Infosys saw a 3% year-on-year growth in revenue in constant currency in the Sept quarter, showing some revival in its BFSI business.Quarter-on-quarter, revenue rose 3.1%. The company revised its guidance upwards to a range of 3.75% to 4.5%, marking the third quarter in a row when it has adjusted its guidance. This is an improvement from the June quarter’s guidance of 3% to 4%, which it had raised from the 1% to 3% called out in the March quarter.
peer Wipro’s revenue dropped 2.3% in constant currency in the Sept quarter compared to the year-ago period, but rose 0.6% sequentially. Wipro had forecast a revenue growth of -1% to 1% for the period. Wipro CEO Srini Pallia said that with strong account mining and traction in the Capco business, BFSI continued to accelerate, delivering 2.7% sequential growth. “This growth was led by the Americas. Additionally, we are seeing momentum in both APMEA and Europe. This marks the third consecutive quarter of growth in BFSI.”
Wipro’s operating margin came in at 16.8% – a 35 basis point rise sequentially and 71 basis point rise year-on-year. In the Americas 2 region, a sequential growth of 0.8% was recorded, largely supported by strong demand and execution within the BFSI sector. Europe, however, faced challenges, resulting in a sequential decline of 0.1%. The decline can be attributed to overall weak demand and client-specific issues in a few accounts.
Infosys and Wipro’s shares dropped 2% and 1.6% respectively in early trades on the NYSE.
