Wipro raises forecast after completing Capco acquisition, to grow 8-10% in Q1

Wipro on Friday raised its revenue growth forecast for the ongoing quarter to 8-10% from the previously projected 2-4%, after the information technology firm completed the acquisition of British IT consulting firm Capco.

The announcement drove Wipro’s shares 4.5% higher intraday Friday to hit a 52-week high on the BSE at ₹511.95, before they gave up most of the gains to end 0.51% higher at ₹492.40.

Bengaluru-based Wipro now expects revenue of $2.32-2.37 billion for the April-June quarter, compared with the guidance of $2.19 billion to $2.23 billion given during the quarterly results announcement earlier in April.


The company said it completed the Capco acquisition on April 29. The projection does not include revenue from the recently announced acquisition of Ampion, it said in a regulatory filing on Friday.

Wipro had reported its best quarterly performance in nearly a decade in the three months through March, with profit jumping 27% and revenue growing 3.4%, as India’s fourth largest IT company witnessed increased deal wins with global clients signing up to transform their technology and shift to digital.

Analysts said Wipro is factoring in revenue from Capco a quarter ahead due to the early closure of the deal. “Instead of the second quarter, the Capco acquisition and consolidation is happening a quarter earlier that is the only difference. Capco will contribute nearly 8% to the company’s revenue for the entire quarter,” said an analyst who did not want to be named.

Some of the large deals it has won are getting larger and the Capco timelines have been advanced. “These factors will contribute to the higher revenue growth guided by the company,” the analyst added.