Wipro Q3 Results Preview: Profit likely to grow in single digit; Q4 guidance seen between 0-2% - here’s what to expect

Wipro Q3 Results Preview: India’s fourth largest IT firm Wipro Limited may report healthy-to-mute third-quarter results for the financial year 2022-23 (Q3FY23) on Friday, January 13. Earlier, Tata Consultancy Services (TCS) on Monday opened the October-December quarter earnings season by reporting mixed numbers.

According to Zee Business research, the weakness in furlough and consulting business may impact growth, however, expects the consolidated profit after tax (PAT) may come at Rs 2,900 crore, which translates to over 9 per cent growth for the three-month period against Rs 2,659 in the last quarter.

Similarly, the consolidated revenue is likely to rise by 3.3 per cent quarter-on-quarter (QoQ) to Rs 23,280 crore in the December-end quarter, while in dollar terms the revenue is expected to come flat at $ 2810 million in Q3FY23 from $ 2798 million, up 0.4 per cent QoQ, the research report said.

Also Read: Infosys Q3 Results Preview: Net profit likely to increase over 9% to Rs 6,580 crore, no change seen in revenue guidance

While the margin is expected to remain in a limited range due to salary expenses of two months, Zee Business research pointed out, expecting that the consolidated margin of Wipro may come at 14.8 per cent in the December quarter versus 14 per cent in the September quarter of this fiscal.

The IT Service margin of the company is seen rising marginally at 15.3 per cent in Q3FY23 against 15.1 per cent previous quarter, as per Zee Business research, and estimated that the IT heavyweight is likely to give between 0-2 per cent guidance for Q4 in constant currency (CC) terms.

In line with Zee Business’ expectations, ICICI Securities also estimates revenue growth at the lower end due to the higher furlough impact. It added, Wipro’s consulting business may continue to witness headwinds while some verticals like retail, hi-tech, and manufacturing are likely facing headwinds in Q3.

Also Read: HCL Tech Q3 Results Preview: Profit may grow in double-digit to Rs 3,850 crore, change in revenue guidance unlikely

Key Monitorable: CY23 Budget commentary, Large deal wins, and pipeline, Consulting outlook, Margins outlook among others.

Wipro Share Price History

Shares of Wipro have been one of the worst performers in 2022. The stock in the last one year has dropped more than 43 per cent, while so far in 2023 it has been flat with a positive bias. The counter on Wednesday closed at the same price as yesterday, at Rs 393.75 per share on the NSE.