Q1FY24 Preview: Wipro: Revenue seen at Rs. 228,926 million, PAT at Rs. 30,322 million

12 Jul 2023 , 10:33 AM

Result date: 13^th July, 2023

Recommendation: Reduce

Target price: Rs. 370

Analysts at IIFL Capital Services are forecasting Wipro’s revenue to decline 2.2% cc QoQ, at the midpoint of the company’s guided range. EBIT margins are expected to expand 40 basis points sequentially, on productivity improvements and continued easing of supply side constraints. They expect Wipro to guide to 0-2% cc sequential growth in Q2FY24. 

Wipro’s IT Services revenue is expected to come within the company’s guidance of decline of 3% to 1% cc sequentially.

The company’s Profit After Tax (PAT) could decline 1.4% on a sequential basis.

Important management insights to watch out for:

• Quantum and number of large deal wins
• Demand outlook for key verticals
• Outlook for discretionary spending, given Wipro’s exposure to Consulting
• Levers to drive margins closer to pre-COVID levels
• Hiring and attrition trends

	June 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	2,766	(2.0)%	1.1%
Revenue (Rs. mn)	228,926	(1.7)%	5.8%
EBIT (Rs. mn)	37,699	0.3%	18.2%
EBIT margin	16.5%	30 bps	170 bps
Profit After Tax (Rs. mn)	30,322	(1.4)%	18.3%
EPS (Rs.)	5.5	(1.4)%	18.2%

Source: IIFL Research