Azim Premji-backed Wipro share price ended on a flattish note on Wednesday, October 16, 2024, ahead of its September quarterly results for FY25. In the upcoming quarter, Wipro's IT services revenue growth in constant currency is expected to be muted, while experts believe the tech giant could give Q3 revenue guidance of -1% to +1%. Among key things to watch out for would be Wipro's guidance, bonus issue announcement, deal wins, and BFSI segment performance. Management commentary will be eyed.
Wipro Share Price:
The large-cap IT stock ended at Rs 532.50 apiece, flat on BSE, with a market cap of Rs 2,78,574.95 crore. The stock ranged from Rs 538.65 apiece to Rs 529.10 apiece during the session.
Wipro Q2 Results Preview:
In its preview note, Sharekhan said, "Wipro is expected to report revenue growth of 0.1% in revenue in CC terms, within its guided range of -1% to 1%. EBIT margin is expected to be flat."
A similar guidance forecast is also from HDFC Securities, despite improvement in US banking & Capco.
Further, in its Q2 note, Phillip Capital said it is expecting Wipro's IT services CC revenue growth to be flat qoq, within its guided range (-1% to +1% qoq in CC). Further, the brokerage expects BFSI & healthcare verticals to lead the growth which will likely be offset by weakness in ENU.
Additionally, IT Services Margins are expected to remain stable in Q2. Wipro's margin levers (utilization, subccon, SG&A, offshore) are largely looking optimised which along with subdued growth will make it difficult to expand margins, Phillip Capital stated.
However, Phillip Capital expects positive Q3 guidance in the range of +1% to +2% in CC revenue growth.
JM Financial also expects cc revenue growth to be flat sequentially, ~30bps cross currency tailwind should result in a 0.3% QoQ USD revenue growth for IT Services. While the brokerage expects growth in BFSI (especially the US) to be offset by sustained weakness in E&U; We have not built a meaningful contribution from the USD 500mn Telecom deal in 2Q.
Among key things to watch out for as per Phillip Capital are -- Q3FY25 Guidance, Consulting outlook, Deal win to revenue conversion comments, vertical outlook, and Margins outlook.
During the June 2024 quarter, Wipro reported consolidated net profit of Rs 3,003.2 crore, up 4.64% from net profit of Rs 2,870.1 crore in Q1FY24 and also up by 5.95% from profit of Rs 2,834.6 crore in the March 2024 quarter.
Meanwhile, consolidated revenue from operations came in at Rs 21,963.8 crore in Q1FY25, lower than revenue of Rs 22,831.0 crore in Q1FY24 and Rs 22,208.3 crore in Q4FY24. The company's IT services segment revenue was at $2,625.9 million, a decrease of 1.2% QoQ and a decrease of 5.5% YoY. Also, non-GAAP constant currency IT Services segment revenue decreased 1.0% QoQ and 4.9% YoY.
Wipro Bonus Issue:
The tech player has informed exchanges about the board meeting that will be held on October 17, 2024, to consider bonus issues.
The upcoming bonus issues will be Wipro's sixth bonus issuance in two decades. The last time Wipro rewarded investors with bonus shares was of 1:3 ratio in March 2019. This followed a 1:1 bonus issue in June 2017, a 2:3 bonus issue in June 2010, and a 1:1 bonus issue in August 2005. The first bonus issuance by Wipro was of a 2:1 ratio in June 2004.
Click it and Unblock the Notifications
Sign in with Google