Q3FY23 Preview: Wipro: Revenues seen at Rs 236,023 million, PAT at Rs 28,663 million

12 Jan 2023 , 10:53 AM

Result date: 13^th January, 2023

Recommendation: Reduce

Target Price: Rs 390

Analysts at IIFL Capital Services forecast revenue growth of 1.3% in constant currency terms, on quarter-on-quarter (Q-o-Q) basis for Wipro, in the December quarter. Ebit margin in the quarter is likely to increase by 20 basis points. Impact of partial wage hike on margin is expected to be offset by improvements in operational efficiency. Net profit in the quarter is forecasted to increased Q-o-Q by 7.8%; and come down year-on-year (Y-o-Y) by 3.5%.

Important management insights to watch out for:

1. Quantum and number of large deal wins
2. Deal pipeline
3. Outlook regarding discretionary spending 
4. Levers available for increasing margins to pre-Covid levels
5. Hiring and attrition trends

Wipro	December quarter estimate	Q-o-Q	Y-o-Y
Revenue ($ mn)	2,829	1.1%	7.2%
Revenue (Rs mn)	236,023	4.7%	16.2%
Ebit (Rs mn)	34,492	6.1%	-2.9%
Ebit margin	14.6%	0.20%	-2.90%
Net income (Rs mn)	28,663	7.8%	-3.5%
EPS (Rs)	5.2	7.8%	-3.5%