Wipro Q1 Results 2022 – 2023 ,IT companys profit may decline, revenue likely to grow marginally

Information technology major Wipro Limited may post mixed earnings in the first quarter of financial year 2022-23 (Q1FY23). An IT services company’s profit may decline year-on-year and sequentially, while revenue in both dollars and rupees may show marginal growth.According to several brokerage estimates, Wipro’s profit may fall 6-4 percent quarter-on-quarter, while 8-9 percent quarter-on-year in the last fiscal quarter on June 23.

Similarly, in dollar terms, earnings could reach around 1-1.5 percent quarter-on-quarter, according to brokers.Even in rupee terms, QoQ revenue may grow by 3-4 per cent during Q1FY23, brokers said in their preview notes on Wipro.Equirus Securities expects IT services revenue in USD to grow 2.9 percent in CC (constant currency) including Rizing (we expect organic growth of +1.9% in CC terms) quarter-on-quarter versus expectations of 1-3 percent growth quarter-on-quarter in CC without Rizing.Similarly, recurring IT services EBIT margins may decline by 40 basis points quarter-on-quarter with headwind margin pressure from M&A and increased amortization costs, higher supply-side issues, higher travel costs, partially offset by operating leverage side effects and increases productivity.

Wipro Q1 Results 2022 – 2023

he said.The brokerage expects Wipro to guide 2.5-4.5% quarter-on-quarter IT services revenue growth in CC in USD in 2QFY23E, including an expected inorganic growth contribution of around 1.5% quarter-on-quarter in 2QFY23E.Motilal Oswal said growth in Q1FY23 should remain within the range set by management in Q4FY22. It expects demand commentary to remain strong and sees margin impacted by wage increases and continued investment in Q1FY23.Q1FY2023 is expected to be a stable quarter in terms of incremental revenue growth for IT services firms amid an adverse macroeconomic environment, ShareKhan said.

He added that the recovery of USD against global currencies will worsen the growth rate of USD yields.The EBIT margin of most IT services companies will gradually decline due to higher retention costs, salary revisions, visa costs and rising travel expenses. Rupee depreciation is expected to partially offset the headwinds, ShareKhan noted.Shares of Wipro Limited ended in the green on Tuesday, gaining 0.19% to Rs 405.50 a piece on the NSE

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