As per an average of brokerage estimates, the company could report an average of Rs 23,586 crore of revenue, up 12-13.2 per cent year-on-year (YoY) when it releases its result on Thursday, April 27.
The company’s Ebit margin is estimated to be between 16-16.7 per cent for the quarter.
Key monitorables: Investors are keenly eyeing the company’s share buyback plan. Its growth guidance for Q1FY24, outlook for consulting business (Capco and Rizing), tech spending in BFS, positioning in cost take-out and vendor consolidation deals, commentary on margin levers, revenue conversion and demand environment will be closely watched.
Jefferies: The brokerage expects Wipro to deliver a revenue growth of 0.5 per cent quarter-on-quarter (QoQ) in constant currency (cc) terms within its guided range of -0.6-1 per cent. Ebit margin could expand by 40 bps QoQ driven by higher utilization and currency benefit. It expects deal bookings to fall sequentially from a higher base last quarter, but these will be in the $ 600-700 mn range supported by larger cost takeout deals. Wipro’s 1QFY24 guidance would serve as an indicator of near term outlook.
That apart, it expects Wipro to report a sequential revenue decline of 0.4 per cent in cc terms. Its exposure to impacted verticals such as hi-tech and consumer, slowdown in discretionary spending and higher exposure to consulting are the drivers of revenue decline, the brokerage said.
PhillipCapital: The brokerage estimates the company’s IT services cc revenue to decline by 0.5 per cent QoQ and rise by 0.5 per cent in dollar terms. The revenue, it said will be impacted by slowdown in Hitech, Retail & CPG verticals and weakness in consulting business. It expects the company to guide for 0 to plus 2 per cent QoQ cc growth for Q1FY24.
Sharekhan: The firm is projected to report a muted 0.2 per cent QoQ cc revenue growth with a likely 110 bps cross currency tailwind to result in a dollar revenue growth of 1.3 per cent QoQ. EBIT margins are expected to be flat.