Wipro Q3 revenue may fall 4% QoQ amid weak demand; wage hikes to hit margins

Revenue for the third quarter of the current financial year at IT major Wipro Ltd is likely to fall 4 percent quarter-on-quarter (QoQ), weighed by higher than usual furloughs, particularly in the banking, financial services, and insurance (BFSI) and hi-tech verticals, said analysts. This, along with weak discretionary demand and cross-currency tailwinds in Q3 FY24, is expected to keep net profit muted. The company is scheduled to announce October-December results on January 12, 2024.

According to an average estimate of five brokerages, revenue is expected to decline 4 percent QoQ to Rs 22,408 crore. This would be worse than the far end of the management guidance band of -1.5 percent to -3.5 percent revenue growth in the quarter. On the other hand, Wipro’s net profit is likely to see a drastic fall of 9 percent QoQ to Rs 2,756 crore.

Going ahead, Wipro may share -1 percent to 1 percent revenue growth guidance for Q4 FY24 in constant currency (CC) terms, said analysts. Moneycontrol