Wipro: IT company Wipro will announce its financial results on Friday at around 4 pm. Analysts expect Wipro to report stable sequential revenue growth that may beat previous estimates and improvement in net profit this time compared to the previous quarter. Manish Chaudhary, head of research at Stockbox, said: “We expect Wipro to report flat sequential revenue growth that may beat previous estimates when it reports its first quarter results today. This expected performance is bolstered by the contribution of CAPCO and a likely improvement in the US market. We expect marginal improvement in margins due to effective cost control measures. Profit after tax is also expected to improve marginally compared to the previous quarter. He said Wipro’s focus will be on Wipro’s ability to secure large deals, including a notable deal in the communications sector, a sector in which it has not done any major deal since 2021.
“Key metrics to watch include insights from the strategic initiatives of Wipro’s new management and the resurgence of the consulting industry,” Chaudhary said.
Ahead of the results, Wipro shares on Friday closed down by about Rs 14.9, or 2.60 per cent, at Rs 558.3 on the BSE.
Kotak Institutional Equities also expects stable revenue for the quarter. Wipro’s revenue is expected to be above the midpoint of guidance of -1.5-0.5%.
“We attribute the relatively solid performance to the strength of CAPCO and potential improvement in the US market. We anticipate a 30bp increase in quarter-on-quarter EBIT margin due to cost control and efficiency measures. We anticipate strong deal signings after several quarters of disappointment. Wipro announced its first mega deal in 2021 in the communications sector. The company has also signed other agreements in addition to the recently announced mega deal,” Kotak said.
In the previous quarter of Q4FY24, Wipro’s profit after tax (PAT) stood at Rs 2,834.6 crore, up 4.95 per cent from Rs 2,694.2 crore in Q3, however, year-on-year, net profit declined 8.5 per cent from its profit of Rs 3,074.5 crore in the fourth quarter of FY24, remaining stable at Rs 22,208.3 crore in Q4FY24 as against Rs 22,205.1 crore in Q3FY24.
Infosys on Thursday reported a 7.1% year-on-year rise in net profit to Rs 6,368 crore in Q4FY25, outperforming expectations. Last week, IT giants Tata Consultancy Services (TCS) and HCL Tech also announced their earnings for the June 2024 quarter, both beating expectations. This led to a surge in its share price. TCS, India’s largest IT services company, reported a 9% year-on-year rise in consolidated net profit to Rs 12,040 crore in the first quarter of FY 2024-25 ending June 30. The company’s operating income grew 5.4% year-on-year to Rs 62,613 crore during April-June 2024. Analysts had projected a profit of Rs 11,999 crore and revenue of Rs 62,190 crore.
HCL Technologies reported a substantial 20.45% year-on-year rise in net profit to Rs 4,257 crore for the first quarter of FY 2024-25. Its operating income grew 6.69% to Rs 28,057 crore during April-June 2024 as against Rs 26,296 crore in the same period last year.
