12 Jan 2022 , 12:08 PM
Wipro stock was under pressure on Wednesday ahead of its corporate earnings for the quarter ending December 2021 (Q3FY22). Investors bet cautiously as wages hikes impact may take a toll, however, strong demand momentum to contribute to the company’s top-line and bottom-line front.
At around 12.05 pm, Wipro was trading at Rs688.75 per piece down by 0.8% on Sensex. The stock has touched an intraday high and low of Rs701.10 per piece and Rs683.15 per piece.
Wipro is expected to meet its revenue guidance due to one month of revenue from ion and strong demand momentum. The company is seen to report a constant-currency revenue growth near 4%.
However, Wipro is seen to log a decline in operating profit margins due to wage hikes impact that could be partly offset by weaker rupee against the dollar.
Key highlights to watch in Q3 would be – management commentary, attrition rate, salary hikes and revenue guidance among others.
In Q2FY22, Wipro reported an 18.9% yoy rise in consolidated net profit to Rs2,930.7cr. Wipro’s consolidated revenue was at Rs19,667.4cr for the quarter under review, also beating the street’s expectations. The revenue grew by 30.1% yoy and 7.8% qoq in Q2FY22. Further, in Q2FY22, the company’s IT Services Segment Revenue was at $2,580 million, an increase of 6.9% QoQ and 29.5% YoY. Meanwhile, Non-GAAP2 constant currency IT Services Segment Revenue increased by 8.1% QoQ and 28.8% YoY.
In the second quarter, Wipro expects Revenue from its IT Services business to be in the range of $2,631 million to $2,683 million. This translates to a sequential growth of 2.0% to 4.0%.
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