India’s IT major Wipro is set to release its Q4 FY23 financial results on Thursday, April 27. The result comes after other IT major firms TCS and Infosys have posted lower-than-expected earnings in the January-March 2023 quarter. According to estimates by various brokerage houses, Wipro is expected to post muted Q4 earnings.
Update: Wipro Q4FY23 Results: Net Profit Remains Flat At Rs 3,074.5 Crore; Revenue Up 11.17%, Announces Rs 12,000 Crore Buyback
HDFC Securities in its report said Wipro’s Q4 FY23 net profit is likely to be flat at Rs 3,021 crore. The company is also likely to post a sequential decline in revenue. Its sales in dollar terms are expected at $2,804 million. In rupee terms, the net sales might increase 0.8 per cent QoQ and 12.3 per cent YoY at Rs 23,422 crore.
The company’s EBIT in rupee terms is pegged at Rs 3,649 crore during the fourth quarter, up 0.7 per cent QoQ and 7.2 per cent YoY. EBIT margin is likely to decline 2 basis points QoQ and 73 bps YoY to 15.6 per cent in the fourth quarter.
Motilal Oswal Financial Services in its note said Wipro is expected to post a 1.8 per cent sequential increase in revenue in US dollar terms at $7,202. On a year-on-year (YoY) basis, it will see an increase of 7.6 per cent. Revenue in rupee terms is set to increase 17 per cent YoY and 1.7 per cent QoQ to Rs 59,200 crore. EBIT margin is likely to increase 30 basis points (bps) QoQ to 24.8 per cent while on a YoY basis, it will decline 10 bps. Adjusted profit after tax (PAT) will likely rise 7 per cent QoQ and 16.9 per cent YoY to Rs 11,640 crore.
Another brokerage ICICI Securities expects Wipro’s revenue to fall 0.5 per cent QoQ CC in Q4FY23, translating to 11.5 per cent YoY CC growth in FY23E, near the lower end of the guided range of 11.5-12 per cent for FY23, given the weakness in the consulting business and worsening macro environment.
ICICI Securities added that Wipro’s EBIT margin is likely to be largely flattish (20-30bps) on QoQ basis expansion in Q4FY23. It also said the company’s revenue growth may remain anaemic and lag its peers due to a weaker growth outlook in the BFSI vertical (35 per cent of revenue) and given that majority of Wipro’s revenue growth in the past has come from BFSI and retail verticals.
Shares of Wipro on Thursday were trading Rs 0.65 or 0.17 per cent lower at Rs 373.85 apiece during the day (1049 IST) on the BSE.
Tata Consultancy Services has reported a 14.8 per cent jump YoY in its net profit to Rs 11,436 crore for the quarter ended March 2023 (Q4 FY23). Its revenue from operations also rose 16.94 per cent to Rs 59,162 crore, compared with Rs 50,591 crore in the year-ago period. TCS’ net profit had stood at Rs 9,959 crore in the corresponding period last year (Q4 FY22).
Infosys, India’s second-largest IT services company, posted a net profit at Rs 6,128 crore for the fourth quarter ended March 2023 (Q4 FY23), a jump of 7.8 per cent over the year-ago period. Its revenues during January-March 2023 increased 16 per cent to Rs 37,441 crore, compared with Rs 32,276 crore a year ago. The net profit of Infosys had stood at Rs 5,686 crore in the corresponding period last year.
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