brush aside the fact that the company still met median estimates with regard to revenue growth, with IT revenue growing 2.4% from the September quarter to $1.577 billion. Wipro had guided for a 1.2-3.5% rise and so it was par for the course. Only that, this time, its peers had raced ahead.
There is some loose talk that Kurien is under pressure as CEO and that the company chairman is worried about how the company is being led. But this is far from the truth. Kurien is still highly regarded by Premji. The chairman had recently said at Davos that Kurien could go on to become the managing director of the company. So the CEO is still sitting pretty. But the indication is that there could be more restructuring within the firm. Kurien is one of the shrewdest CEOs in the business, but still this has been a very tough assignment for him. Premji has also revealed in Davos that Rishad Premji—his son—will not become the CEO of Wipro. Rishad will take the board route. Talk is that he may become the executive vice-chairman of the company.
The fourth quarter results will be crucial for the firm. Wipro has guided for IT revenues in the range of $1.585-1.625 billion. That represents a gain of 0.5-3%.
Analysts were expecting that band to be in the 1-3.5% range. Its cross town rival Infosys is likely to grow by 2.7% sequentially in Q4. Wipro’s utilisation rates had slipped to 74.8% last quarter from a near 78% in Q2. The positive point is that discretionary spend has started to open up, but no one knows by how much. Wipro has to take advantage of these opportunities more than ever before and Q4 may be a great time to script a turn around.