Q3FY24 Preview: Wipro: Revenues seen at Rs. 219,043 million, PAT at Rs. 28,417 million

11 Jan 2024 , 09:07 AM

Result date: January 12, 2023

Recommendation: Reduce

Target price: Rs. 375       

Analysts at IIFL Capital Services are forecasting Wipro’s revenue to decline 3% cc sequentially in the December quarter, closer to the lower end of the company’s guided range (-1.5% to -3.5% cc sequential decline). EBIT margin of the company’s IT services business are expected to remain flat sequentially, as decline in revenues and partial impact of wage hikes are offset by productivity improvements.

Wipro could guide to -1.5% to 0.5% cc sequential growth for the March 2024 quarter.

The company’s Profit After Tax or PAT could grow 7.4% on a sequential basis.

Important management insights to watch out for:

• The quantum and nature of large deal wins 
• Demand outlook for key verticals and consulting
• Q4 FY24 guidance
• Levers to drive margins closer to pre-COVID levels
• Insights on recent senior management exits

	December 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	2,618	(3.5)%	(6.6)%
Revenue (Rs. mn)	219,043	(2.8)%	(6.3)%
EBIT (Rs. mn)	35,437	6.3%	(5.8)%
EBIT margin	16.2%	140 bps	10 bps
Profit After Tax (Rs. mn)	28,417	7.4%	(6.9)%
EPS (Rs.)	5.3	5.7%	(4.2)%

Source: IIFL Research