January 13, 2023
New Delhi, India
Wipro Q3 Results
In its latest financial report, Wipro, a prominent IT services company, reveals a fourth consecutive quarterly decline in net profit, raising concerns amid industry challenges. The Q3 results also show consolidated revenue below analyst estimates, leading to a revision in the company’s guidance for the upcoming quarter.
Net Profit Decline and Revenue Challenges: Wipro’s Q3 net profit witnessed a 12% year-on-year decline, settling at Rs 2,694 crore. This marks the fourth consecutive quarter of profit downturn, reflecting ongoing challenges in the IT sector. Consolidated revenue for the same period came in at Rs 22,205 crore, down 4.4% YoY and falling short of analyst projections of Rs 22,343 crore.
Guidance Adjustment Amidst Industry Trends: Wipro has adjusted its revenue growth guidance for the fourth quarter, signaling a further downward revision compared to the previous quarter. The new guidance range now stands at -1.5% to 0.5%, highlighting the company’s cautious approach amid the continued uncertainties in the IT industry.
Industry Context and Peer Comparison: The report underlines the seasonality of Q3 as a traditionally weak period for IT companies due to the holiday season in major markets. A brief comparison with industry peers, including Tata Consultancy Services and Infosys, provides context for evaluating Wipro’s performance in the broader market landscape.
Operational Challenges and Deal Wins: Wipro’s operating margin faced pressure, dropping marginally by 10 basis points to 16%. The impact was attributed to a one-month wage hike and furloughs. The report also notes the company’s performance in securing new business deals, with large deals worth $0.9 billion in Q3, slightly lower than the previous quarter.
Market Response and Share Movement: Interestingly, despite the challenging results, Wipro’s shares closed 3.88% higher at Rs 465.45 apiece on the BSE. The market response suggests a nuanced interpretation of the results, possibly factoring in expectations or other positive aspects not explicitly outlined in the report.
Wipro’s Q3 results reveal a complex landscape for the company amid a profit decline, revenue challenges, and cautious guidance adjustments. As the IT industry navigates ongoing uncertainties, stakeholders will closely monitor how Wipro addresses these challenges and positions itself in the evolving market.
Check All Q3 Results
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.