Wipro Ltd is all set to report its December quarter results on Friday, January 17, the IT major informed stock exchanges on Wednesday. As per Wipro, the results would be announced after stock market trading hours in India. The senior management
will discuss the company’s performance for the quarter at 7 pm, the same day.
The IT firm is expected to report a double digit rise in profit for the December quarter on flattish sales. It is expected to offer better outlook for Q4 with positive topline growth on account of improving deal pipeline and closure activities.
Nirmal Bang Institutional Equities is expecting Wipro to report 16.6 per cent year-on-year (YoY) rise in adjusted net profit at Rs 3,148.40 crore. It sees total contract value (TCV) to be in range of $1.1-1.4 billion. It sees revenue rising 0.9 per cent sequentially in constant currency (CC) terms .
“Positive growth from BFSI mortgage business and CAPCO is likely to offset by pressure from Energy and Utilities and Manufacturing vertical especially in Europe,” it said.
All eyes would be on new measures of CEO to turnaround the business; senior management attrition impact on business; commentary on consulting and mortgage businesses and margin levers to meet the target of 17 per cent EBIT margins.
Nuvama sees net profit at Rs 2,967.80 crore, up 10.2 per cent. “We expect IT Services revenue to decline 0.6 per cent QoQ in CC and 1.3 per cent QoQ in dollar terms. Margins are expected to be lower by 50bp QoQ due to two months’ impact of wage hike. We expect Wipro to give revenue growth guidance of -1% to +1% CC QoQ for Q4FY25E,” the brokerage said.
Nuvama said it would look for update on the Capco business and deal execution.
Prabhudas Lilladher sees profit at Rs 3,040 crore, up 12 per cent. It sees sales falling 0.7 per cent YoY to Rs 22,040 crore. Margin is seen at 16.1 per cent against 14.8 per cent YoY.
“We expect Wipro to report revenue declined of 1 per cent QoQ in CC and 2.1 per cent QoQ in dollar terms (currency headwind of 110 bps). Q3 performance of company will be impacted by furloughs in Capco, weakness in Manufacturing & client specific issues in ENU. We expect EBIT margin to decline by 50 bps QoQ due to 2 months wage hike impact & weak topline growth,” it said.
