On Thursday, April 27, India’s largest IT company Wipro is scheduled to reveal its Q4 FY23 financial results. The outcome follows lower-than-expected results from TCS and Infosys, two other large IT companies, in the quarter from January to March 2023. Several brokerage firms have predicted that Wipro would report weak Q4 results.
In a research, HDFC Securities predicted that Wipro’s Q4 FY23 net profit will remain stable at Rs 3,021 crore. Additionally, the company’s revenue is probably going to fall sequentially. Its estimated sales in dollars will total $2,804 million. The net sales might rise to Rs 23,422 crore, or 0.8% QoQ and 12.3% YoY, in currency terms.
In terms of rupees, the company’s EBIT for the fourth quarter is estimated to have been Rs 3,649 crore, up 0.7% QoQ and 7.2% YoY. In the fourth quarter, EBIT margin is probably going to drop to 15.6%, down 73 basis points year over year and 2 bps QoQ.
In a note, Motilal Oswal Financial Services predicted that Wipro would report sales of $7,202, a 1.8% sequential gain. There will be a rise of 7.6% year over year (YoY). In terms of rupees, revenue is anticipated to rise by 17% YoY and 1.7% QoQ to Rs 59,200 crore. EBIT margin is anticipated to rise 30 basis points (bps) from quarter to quarter to reach 24.8% while falling 10 bps from year to year. The adjusted profit after tax (PAT) is anticipated to increase to Rs 11,640 crore by 7.0% QoQ and 16.9% YoY.
Given the deterioration in the consulting industry and the deteriorating economic climate, another brokerage, ICICI Securities, anticipates Wipro’s revenue to decline by 0.5% QoQ CC in Q4FY23, equating to 11.55% YoY CC growth in FY23E, close to the lower end of the projected range of 11.5-12% for FY23.
Wipro’s EBIT margin is predicted to be basically flattish (20-30bps) on a QoQ basis growth in Q4FY23, according to ICICI Securities. A worse growth expectation in the BFSI vertical, which accounts for 35% of sales, as well as the fact that the bulk of Wipro’s revenue growth in the past has come from the BFSI and retail verticals, are further reasons why the company’s revenue growth may stay anemic and behind its rivals.
At 10:49 IST on Thursday, Wipro shares were trading 0.65 rupees, or 0.17 percent, down at Rs 373.85 a share.
For the quarter ending March 2023 (Q4 FY23), Tata Consultancy Services reported a 14.8% increase YoY in net profit of Rs 11,436 crore. Its operational income increased 16.94% to Rs 59,162 crore from Rs 50,591 crore in the same period last year. TCS’ net profit for the same quarter in the previous year (Q4 FY22) was Rs 9,959 crore.
The second-largest IT services provider in India, Infosys, reported a net profit of Rs 6,128 crore for the fourth quarter that ended in March 2023 (Q4 FY23), up 7.8% over the same quarter the previous year. In comparison to January to March of last year, its revenue climbed 16% to Rs 37,441 crore from Rs 32,276 crore. In the same time the previous year, Infosys’ net profit was Rs 5,686 crore.