Q4FY23 Preview: Wipro: Revenue seen at Rs 237,170 million, PAT at Rs 32,432 million

25 Apr 2023 , 10:07 AM

Result date: 27^th April, 2023

Recommendation: Reduce

Target price: Rs 370

Analysts at IIFL Capital Services are forecasting Wipro to post flat revenue (cc QoQ) during the quarter, within the company’s guided range (0.5% to 1.5% cc QoQ). EBIT margins are expected to expand 40 basis points sequentially, on easing supply side constraints and improved productivity. Analysts at IIFL Capital Services expect Wipro to guide to 0-2% cc sequential growth in Q1FY24.

Important management insights to watch out for:

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

	March 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	2,845	1.5%	4.5%
Revenue (Rs. mn)	237,170	1.5%	13.1%
EBIT (Rs. mn)	39,175	4.1%	11.6%
EBIT margin	16.5%	40 bps	(20) bps
Profit After Tax (Rs. mn)	32,432	6.2%	5.1%
EPS (Rs.)	5.9	6.2%	5.1%

Source: IIFL Research