Q4FY24 Preview: Wipro: Revenues seen at ₹222,249 Million, PAT at ₹29,935 Million

18 Apr 2024 , 10:58 AM

Result date: April 19, 2024

Recommendation: Reduce

Target price: ₹420

Analysts at IIFL Capital Services are expecting Wipro to post a decline of 0.1% in its cc revenues on a sequential basis. This will be closer to the higher end of the company’s guided range. IT Services EBIT margins are expected to decline 10 basis points sequentially, as muted revenue growth and partial impact of wage hikes are offset by productivity improvements.

Wipro could provide guidance of (0.5) % to 1.5% sequential movement in cc revenues for Q1.

The company’s Profit After Tax (PAT) could grow 11% sequentially.

Important management insights to watch out for:

• Q1FY25 guidance
• Deal wins’ quantum and nature
• Demand outlook for key verticals and consulting
• Levers to drive margins closer to the pre-COVID levels
• Management attrition
• Capital allocation

	March 2024 estimates	QoQ change	YoY change
Revenue (US$ mn)	2,664	0.3%	(5.6)%
Revenue (₹ mn)	222,249	0.0%	(4.6)%
EBIT (₹ mn)	36,436	10.9%	(3.0)%
EBIT margin	16.4%	160 bps	30 bps
Profit After Tax (₹ mn)	29,935	11.1%	(2.6)%
EPS (₹)	5.7	11.1%	(2.1)%

Source: IIFL Research