Indian IT major Wipro Ltd. will announce its financial results for the quarter ended December 2022 on Friday.
The company is expected to deliver moderate revenue and profit growth in low teens, according to Bloomberg estimates.
The impact of macroeconomic troubles hounding economies across the globe, especially rising recessionary fears in the U.S. and European markets, might be seen on the company’s financial performance during the quarter.
According to Bloomberg consensus, in consolidated terms, Wipro is expected to post a revenue of Rs 23,345.55 crore, and a net profit of Rs 2,975.57 crore for the three months ended Dec. 31, 2022. The company is expected to post EBIT at Rs 3,481.51 crore and EBIT margin of 14.9%.
In the previous quarter, the company had reported revenue of Rs 22,539.70 crore, and net profit of Rs 2,659 crore. EBIT for the period stood at Rs 3,137.40 crore, while the EBIT margin was 13.9%.
In its previous quarter’s earnings report, Wipro’s outlook for the December quarter forecast revenue from IT services business in the range of Rs 22,339-22,672 crore, marking a sequential growth of 0.5-2%.
For the December quarter, Bloomberg analysts expect the IT bellwether to reap Rs 23,116 crore from the IT services vertical. IT products and ISRE are expected to contribute Rs 157 crore and Rs 148 crore to the topline, respectively. Employee benefit expenses are estimated to stand at Rs 14,151 crore.
The Wipro share is expected to move 2.9% during the day after the earnings are announced, according to Bloomberg estimates.
The share has been down 43.4% in the past year, compared to a 2.3% dip in the Sensex.
The Bloomberg Consensus indicates 12 analysts in favour of buying the stock. While a similar number have given a ‘hold’ call for the scrip, 21 analysts have given a ‘sell’ rating to the stock.
Target price for the stock over the last 12 months has been pegged at Rs 414.17, compared to the previous close of Rs 394.50. Bloomberg