Wipro Q3 results today: Revenue likely to drop in December quarter; here's what we can expect from IT major

Wipro Q3 results preview, Wipro Q3 results 2024 expectations: Wipro is all set to report its financial results for the October-December period on Friday, January 12, a day after IT giants TCS and Infosys posted in-line numbers for the quarter ended December 31, 2023 (Q3 FY24).

What to expect from Wipro

According to Zee Business research, Wipro is estimated to report a consolidated net profit of Rs 2,600 crore for the quarter ended December, which translates into a sequential drop of 1.7 per cent from Rs 2,646 crore in Q2. 

The analysts peg the IT firm’s revenue for the three-month period at Rs 22,150 crore, a decline of 1.6 per cent on a quarter-on-quarter (QoQ) basis against Rs 22,516 crore logged in the July-Sepetmber quarter.

In dollar terms, revenue is estimated to slip 2.7 per cent sequentially to $2,713.3 million on account of reducing client expenses in the consulting business, according to the research. Constant currency earnings are expected to decline by 2.5%, while CC earnings growth guidance of -1% to 1% is possible in Q4FY24, according to the research.

The software company’s margin—a key measure of profitability for a business—is expected to come in at 14.2 per cent for the quarter, mildly higher in comparison to the previous three months at 13.7 per cent.

Operating margins are expected to be under pressure due to an increase in salary expenses, according to Zee Business research.
The IT service margin of the company is expected to be at 15.1 per cent, a drop from 16.1 per cent on a sequential basis

The Bengaluru-headquartered firm is likely to report a two per cent rise in quarterly earnings before interest and taxes (EBIT) to Rs 3,135 crore vs Rs 3,075 crore in Q2, according to Zee Business research. 

The commentary on revenue conversion, consulting, and deal pipeline will be the key monitorables, according to the research desk.

Wipro Q2 results: Here's how the IT firm fared in July-September

For the quarter ended September 2023, Wipro reported a 7.5 per cent QoQ drop in its consolidated net profit at Rs 2,667.3 crore for the quarter ended September 30, 2023 (Q2FY24).

Read more about Wipro Q2 earnings

Wipro shares: Past performance  

Wipro shares finished the December quarter 17 per cent stronger, underperforming gains of 25.5 per cent and 28.7 per cent in the Nifty50 and Nifty IT indices, respectively.

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