Wipro raises guidance after completing Capco deal

BENGALURU: Wipro raised its guidance for the first quarter, expecting to grow sequentially at 8-10%, up from 2-4% it forecast earlier this month, as it completed the acquisition of British technology and consultancy company Capco.
This would be one of the best guidance provided by the company in years, and comes at a time when CEO Thierry Delaporte is about to complete a year at the helm soon. It also cheered investors – shares were up 2% in afternoon trade on the BSE – who have often been left disappointed by the company’s continuous muted guidance even as larger rivals sounded more optimistic and galloped past.
Capco provides digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific. The deal is expected to increase Wipro’s footsteps in the BFSI segment.
For the quarter ending June 30, Wipro now expects revenue of $2.32-2.36 billion, up from $2.19-2.23 billion on a constant currency basis. Wipro told investors during the announcement of its fourth quarter results that the guidance excluded revenue from Capco and Australia’s Ampion. The revised guidance too does not include incremental revenue from the Ampion deal which Wipro bought for $117 million.
Under Delaporte, the company has struck some large deals and made acquisitions to boost its presence in cloud, cybersecurity and data & analytics space which have been contributors to the large deal pipelines of IT services companies.

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