Wipro, Tech Mahindra Revenues Shrink in Q3

Worst not behind even as IT firms beat estimates; margins a bright spot

- Jas Bardia

Wipro Ltd and Tech Mahindra Ltd ended 2024 on a weak note with sequential revenue declining in the third fiscal quarter, implying that the worst is not yet behind for the two software services providers that saw revenue contract in the previous financial year.

On Friday, Bengaluru-based Wipro reported a sharper dip in business compared to smaller peer Tech Mahindra; both disclosed third-quarter results after market hours. Wipro's revenue totalled $2.61 billion, down 2% sequentially. Much of this decline was on account of weak business in Europe, which makes up 27% of the company's revenue.

Still, the company did not perform as badly as expected. A Bloomberg survey of 27 analysts had estimated Wipro to report a revenue of $2.59 billion.

For Pune-based Tech Mahindra, revenue came in at $1.57 billion for the three months through December, down 1.38% from the preceding quarter. The contraction was driven by telecom companies, which make up a third of its topline.