The result comes after other IT major firms TCS and Infosys reported lower-than-expected earnings for the January-March 2023 quarter.
Wipro expects sluggish Q4 earnings, according to estimates from various brokerage houses
India’s IT major Wipro is set to release its Q4 FY23 financial results on Thursday, April 27. The result comes after other IT major firms TCS and Infosys reported lower-than-expected earnings for the January-March 2023 quarter. According to estimates from various brokerage houses, Wipro’s Q4 results are expected to be lackluster.
HDFC Securities in its report said that Wipro’s Q4 FY23 net profit is likely to be flat at Rs 3,021 crore. The company is also likely to register a sequential decline in revenue. In dollar terms, its sales are expected to be $2,804 million. In rupee terms, net sales may grow by 0.8 percent QoQ and 12.3 percent YoY to Rs 23,422 crore.
In rupee terms, the company’s EBIT during the fourth quarter stood at Rs 3,649 crore, up 0.7 per cent QoQ and 7.2 per cent YoY. EBIT margin in the fourth quarter is expected to decline by 2 basis points QoQ and 73 bps YoY to 15.6 per cent.
Motilal Oswal Financial Services said in its note that Wipro is expected to report 1.8 per cent sequential growth in revenue at $7,202 in US dollar terms. On a year-on-year (YoY) basis, it will see an increase of 7.6 per cent. In rupee terms, revenue grew 17 percent YoY and 1.7 percent QoQ to Rs 59,200 crore. EBIT margin is expected to expand by 30 basis points (bps) QoQ to 24.8 per cent, while it will decline by 10 bps on a YoY basis. Adjusted profit after tax (PAT) will grow by 7 percent QoQ and 16.9 percent YoY to Rs 11,640 crore.
Another brokerage ICICI Securities expects Wipro’s revenue to fall 0.5 per cent QoQ CC in Q4 FY2023, translating to 11.5 per cent YoY CC growth in FY23, guided range of 11.5-12 per cent for FY23 near the lower end of the quarter, given the weakness in the consulting business and the deteriorating macro environment.
ICICI Securities said Wipro’s EBIT margin is likely to be largely flat (20-30 bps) in Q4 FY23 based on expansion on a QoQ basis. It also said that the company’s revenue growth could remain anemic and lag its peers due to a weak growth outlook in the BFSI vertical (35 per cent of revenue), and given that BFSI and retail accounted for a major portion of Wipro’s revenue growth in the past. Came from vertical.
On Thursday, Wipro shares were trading at Rs 373.85, down Rs 0.65 or 0.17 per cent during the day (1049 IST) on the BSE.
Tata Consultancy Services has reported a 14.8 per cent rise in its net profit to Rs 11,436 crore for the quarter ended March 2023 (Q4 FY23). Its revenue from operations also grew by 16.94 per cent to Rs 59,162 crore, as against Rs 50,591 crore in the year-ago period. TCS’s net profit stood at Rs 9,959 crore in the corresponding period of the previous year (Q4 FY22).
India’s second largest IT services company Infosys reported a net profit of Rs 6,128 crore for the fourth quarter (Q4 FY23) ended March 2023, up 7.8 per cent over the year-ago period. Its revenue grew 16 per cent to Rs 37,441 crore during January-March 2023, as against Rs 32,276 crore a year ago. Infosys had a net profit of Rs 5,686 crore in the same period last year.
read all latest business news, tax news And stock market update Here
