Wipro Q1 results preview: Revenue likely to be flat; guidance to be in focus; here’s what experts say

Wipro Q1 results preview: Wipro Ltd, the fourth largest information technology (IT) services company, is all set to announce its earnings for the first quarter of fiscal 2025 on Friday, July 19. The analyst predicts that Wipro's sequential revenue growth in the quarter that ended in June would be flat. Revenues would exceed the -1.5-0.5% projection midpoint, according to Kotak Institutional Equities. The brokerage also stated that it believes the strength of CAPCO and the probable rebound in the Americas market to be the reasons for the reasonably solid run.

Based on an average of five brokerage firms, Wipro's revenue is expected to increase slightly from ₹22,208.3 crore in the March quarter to ₹22,491 crore in April-June.

Axis Securities in its report said that it expects Wipro to report revenue growth of 0.9% quarter-on-quarter (QoQ) in rupee terms.

However, because of the macro effect and ongoing volatility in verticals, Motilal Oswal indicated in its analysis that it expects the IT giant to show a decrease of around 0.5% in Q1FY25.

Brokerageviews on operating margins, or earnings before interest and tax, or earnings before interest and tax (EBIT), are mixed. “We forecast 30 basis points (bps) increase in EBIT margin qoq due to cost containment and efficiency measures,” said Kotak in its report.

Nuvama predicts that margins will decline by 20 basis points on a quarterly basis. According to Motilal Oswal, the margin on IT services is projected to be range boundand may even slightly decline.

“Operating margins may expand by 44 bps QoQ led by volume growth and lower on site expenses,” said Axis Securities in its report.

Wipro's profit after taxes is predicted to rise marginally from ₹2,835 crore in the March quarter to ₹2,908 crore in April-June, based on the average of five brokerage companies.

Deal Wins

Brokerage houseKotak predicts significant deal signings following several quarters of disappointment. According to the brokerage's report, Wipro announced its first mega-deal in the communications vertical since 2021. In addition to the massive transaction that was just revealed, the company has secured additional agreements.

Key monitorable to watch out

Brokerage Motilal Oswal states that the main metrics to be watched are the strategic efforts of the new management and remarks on the consultancy industry's resurgence.

Growth Guidance for Q2FY25

Brokerage Kotak anticipates that Wipro will provide a forecast range of (-)1-1% for the September 2024 quarter, with flat revenuesat the midpoint. Similarly, Nuvama anticipates that Wipro will provide Q2FY25 CC QoQ revenue growth guidanceof -1% to +1%.

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