Wipro shares trade tad higher ahead of Q2 results

Shares of the software major Wipro traded 0.5 per cent higher at Rs 413.3 apiece on the BSE ahead of its Q2 results due to be announced later in the day. Last week, the top IT services companies posted muted Q2 performance, signalling that the challenging time for the sector is unlikely to end anytime soon.

Domestic brokerage JM Financial expects Wipro to report consolidated revenue of Rs 22,800.7 crore, down 0.1 per cent quarter-on-quarter (QoQ) and up 1.2 per cent year-on-year (YoY). Consolidated EBIT is expected to rise 2.6 per cent QoQ and 12.8 per cent YoY to Rs 3,547.7 crore. Further, the net profit is seen at Rs 3,043.2 crore, up 6 per cent QoQ and 14.5 per cent YoY. 

For the Q3 period of FY24, the brokerage sees the IT player to guide for a 0–2 per cent QoQ growth in constant currency (CC) terms.

Another brokerage, IDBI Capital, sees the company’s revenue decline by 1 per cent in CC terms. Softness in the consulting business and client-specific challenges across geographies will impact revenue growth, said the brokerage.

At 10:36 am, the shares of Wipro traded 0.43 percent higher at Rs 413.

Wipro’s Q1 performance

In the Q1 period, the company’s consolidated net profit stood at Rs 2,870 crore versus Rs 2,564 crore logged during the same period last year. However, the same in the March-ended quarter was Rs 3,074 crore, marking a 6.65 per cent decline sequentially. The company guided for -2.0 per cent to +1.0 per cent sequential growth in CC terms.