Wipro’s Q2FY24 earnings are expected to face challenges due to adverse macroeconomic conditions in key markets. The company is likely to report a decline in revenue in constant currency terms, although net profit may show a year-on-year increase. Additionally, Wipro may revise its revenue guidance for Q3.
Wipro Q2 Results Preview
In Q1FY24, Wipro reported a net profit of ₹2,870.1 crores, a YoY increase of more than 11.95 percent, while revenue only grew by 6 Percent year-on-year. Sharekhan predicts that Wipro could see a consecutive decline of 0.4 percent in revenue in constant currency terms, in line with Q2 guidance of -2 percent to 1 percent. EBIT margin is expected to remain flat due to ongoing planning, while the operating profit may increase by 134 basis points YoY. Wipro’s IT services in constant currency terms are anticipated to decline by 0.9 percent quarter-on-quarter, within the range of -2 percent to +1 percent QoQ in constant currency, according to Phillip Capital.
The revenue may be impacted by weakness in the Banking, Financial Services, and Insurance (BFSI) and Hitech verticals, as well as challenges in the consulting business. The brokerage firm expects Wipro’s IT services margin to remain steady at 16.1 percent.
Investors and analysts will be looking for guidance on Q3FY24 growth, updates on large project deals, consulting outlook, pipeline, and vertical outlook.
Please note that these details are based on the available information, and any further developments will be shared as they become available. Stay tuned for more updates.
