Q3FY23 Preview: Wipro: Revenues seen at Rs236,023 million, PAT at Rs28,663 million

13 Jan 2023 , 09:47 AM

Result date: 13^th January, 2023

Recommendation: Reduce

Target price: Rs390

 

Analysts at IIFL Capital Services expect Wipro to post revenue growth of 1.3% sequentially in constant currency terms. This is at the midpoint of the company’s guidance of 0.5-2% cc sequential growth in constant currency revenues. 

Wipro’s EBIT margin could expand 20 basis points(bps) sequentially, as the impact of partial wage hikes is offset by operational efficiencies. Analysts at IIFL Capital Services expect Wipro to guide to for constant currency revenue growth of 0.5-2.5% on a sequential basis in Q4FY23. 

The company’s Profit After Tax or PAT could grow 7.8% sequentially.

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

 

	December 2022 estimates	QoQ change	YoY change
Revenue (US$ 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%	20   bps	(290) bps
Profit After Tax (Rs. mn)	28,663	7.8%	(3.5)%
EPS (Rs.)	5.2	7.8%	(3.5)%

Source: IIFL Research