Wipro's New Deal Wins Drop to a Four-Year Low

Wipro, one of India's biggest technology companies, had a rough quarter. The amount of new business it signed fell to its lowest point in nearly four years. This has made investors and analysts worried that Wipro is falling behind its competitors in a fast-changing industry.

Wipro's stock dropped 4.5% in early trading in the United States after the news came out on Thursday. The company's chief executive officer, Srinivas Pallia, has been working hard to turn things around for more than two years. But many experts say the company is still struggling to get back on track.

One analyst, Rishubh Vasa from Indsec Securities, said that Wipro 'is still not out of the woods.' He explained that the company's ability to win new contracts has been getting weaker for the past two to three quarters. He summed it up simply: 'Their order book is in stress.'

The numbers back up that concern. The total value of new contracts Wipro signed in the three months ending September 30 fell to $2.6 billion. That is a big drop from $4.7 billion during the same period a year earlier. Losing that much business in one year is a serious sign of trouble.

Part of the problem is a major change sweeping through the tech world — artificial intelligence, or AI. AI has shaken up India's $315 billion IT industry, forcing companies to change how they do business. Many firms have had to offer big discounts just to win new deals, making it harder to earn a profit.

Wipro has also faced other challenges. Several top company leaders have left, and the company has had trouble managing businesses it recently bought. Meanwhile, rivals like Cognizant and Tech Mahindra have found ways to grow. Cognizant has been winning deals by offering lower prices, and Tech Mahindra improved its profits by dropping unprofitable clients.

Despite the struggles, Wipro did have some modest bright spots. Its total revenue for the quarter rose 9.1% to about $2.60 billion, which was slightly better than what analysts had expected. However, its net profit fell 1.5% to about $336 million, which came in below expectations. Higher costs for paying workers and outside contractors hurt the bottom line.

Looking ahead, Wipro expects its revenue in the next quarter to be between $2.57 billion and $2.63 billion. That means revenue could dip slightly or grow just a little. CEO Pallia warned that the upcoming holiday season, when many clients temporarily pause their projects, would also make things harder for the company.