Wipro Limited is set to announce its Q2 FY24 results on October 16, with analysts projecting a mixed performance amidst challenging market conditions. Based on estimates from eight brokerages, the IT services giant is expected to show resilience in its financial metrics despite ongoing headwinds in the tech sector.

Financial Projections

Wipro's performance is anticipated to align with its guided range of -1% to +1% constant currency growth. The modest revenue increase is primarily attributed to the ramp-up of the Phoenix deal and other large contracts secured by the company.

Key Factors Influencing Performance

• Weak Discretionary Spending: The tech industry continues to face challenges with reduced client budgets for discretionary projects.
• Pricing Pressure: Large deals are experiencing pricing pressure, impacting overall margins.
• Deal Ramp-ups: The costs associated with ramping up large deals are expected to put pressure on margins in the short term.
• Currency Movements: Some analysts suggest potential margin improvements due to favorable currency fluctuations.
• Operational Efficiency: Efforts to enhance operational efficiency may partially offset margin pressures.

Looking Ahead

For the upcoming December quarter, Wipro is expected to guide for a 0-2% constant currency growth. This projection is supported by:

1. Continued ramp-up of large deals
2. Potential recovery in the European market

The total contract value (TCV) of large deals is estimated to be around $1.50 billion, indicating a healthy pipeline for future growth.

Market Perspective

Analysts note that Wipro's recovery pace remains slower compared to its larger peers in the IT services sector. Investors are likely to focus on several key areas:

• Margin movement trends
• Strength of the deal pipeline
• Management's commentary on visibility for second-half recovery

As the tech sector navigates through a period of cautious spending and economic uncertainty, Wipro's performance in Q2 FY24 will be closely watched as an indicator of broader industry trends and the company's ability to adapt to changing market dynamics.

Wipro's upcoming earnings release will provide crucial insights into its strategic initiatives and their effectiveness in driving growth amidst challenging market conditions.

Wipro Limited (BSE: 507685, NSE: WIPRO, NYSE: WIT), a leading global information technology company, has announced the voluntary dissolution of its stepdown subsidiary, Aasonn Philippines Inc., effective October 1, 2025. This move is part of Wipro's strategic initiative to streamline and improve the group's overall structure.

Key Details of the Dissolution

• Effective Date: October 1, 2025
• Entity Affected: Aasonn Philippines Inc., a stepdown subsidiary of Wipro Limited
• Purpose: To rationalize and consolidate the overall group structure

Financial Impact

According to the company's disclosure, Aasonn Philippines Inc. had minimal financial impact on Wipro's operations:

These figures, reported as of March 31, 2025, indicate that the dissolution of Aasonn Philippines Inc. is unlikely to have a significant direct impact on Wipro's financial performance.

Regulatory Compliance

Wipro has made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided the necessary details to the stock exchanges, including BSE, NSE, and NYSE, where its shares are listed.

Strategic Implications

The dissolution of Aasonn Philippines Inc. appears to be a strategic move by Wipro to optimize its corporate structure. By streamlining its operations and eliminating non-contributing entities, Wipro aims to enhance operational efficiency and potentially reduce administrative overhead.

This restructuring initiative may be part of a broader strategy to focus on core business areas and allocate resources more effectively across the group. As global IT companies face increasing competition and rapidly evolving market demands, such organizational adjustments can help maintain agility and improve overall performance.

Investors and stakeholders will likely be watching closely to see if this move leads to any noticeable improvements in Wipro's operational efficiency or financial performance in the coming quarters. However, given the minimal financial contribution of Aasonn Philippines Inc., the immediate impact on Wipro's bottom line is expected to be limited.

Wipro continues to demonstrate its commitment to corporate governance and transparency through timely disclosures of such organizational changes, keeping shareholders and the market well-informed of its strategic decisions.