
Wipro Ltd is likely to report 5-13 per cent year-on-year jump (YoY) in net profit for the September quarter on 1-2 per cent drop in sales. BFSI & healthcare verticals may lead the growth, which could be offset by weakness in ENU and manufacturing verticals, said analysts. Margin is seen falling, sequentially.
All eyes would be on the bonus issue, Q3FY25 guidance, consulting outlook, commentary on deal win-to-revenue conversion and vertical-wise outlook.
Prabhudas Lilladher expects Wipro to report flattish sequential revenue growth in constant currency (CC), which would be the mid-point of its guidance of -1 per cent to +1 per cent QoQ growth.
E&U and manufacturing are expected to be soft verticals for the IT major. Operating margin is expected to decrease 60 basis points QoQ to 15.8 per cent, due to partial (one-month) wage hike impact and flattish growth in Q2. The brokerage sees Wipro guiding for a revenue guidance band of +1 per cent to -1.5 per cent for the March quarter. For the September quarter, it sees profit rising 11.9 per cent to Rs 2,960 crore on 1.4 per cent drop in sales at Rs 2,22.10 crore.
Axis Securities expects Wipro to report 5.5 per cent YoY rise in net profit at Rs 3,028 crore for the September quarter on 1.6 per cent YoY drop in sales at Rs 22,460 crore. Ebit margin is seen plunging 905 basis points YoY to 16.2 per cent.
"We expect revenue to grow 2.4 per cent QoQ, aided by ramp up in new deals. Operating margins may contract 28 bps QoQ, led by higher on site expenses. The management commentary on new deal ramp up and visibility going ahead is key thing to watch," it said.
PhillipCapital sees profit for Wipro rising 13.5 per cent YoY to Rs 3,003 crore on 1.6 per cent drop in sales at Rs 22,162 crore. Ebit margin is seet at 16.4 per cent. The IT services CC revenue growth is seen flat QoQ, within the guided range.
"We expect BFSI & healthcare verticals to lead the growth which will likely be offset by weakness in ENU. 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," it said.
It sees Wipro guiding for +1 per cent to +2 per cent CC growth rate for Q3.