Wipro Q1 results today: Predictions, history, trading strategy & 6 things to watch out for

economictimes.indiatimes.com:

Wipro announces its Q1 earnings after market hours, investors are expecting the Bengaluru-based IT major to report report revenue decline of 2% quarter-on-quarter (QoQ) in constant currency (CC) terms — at the mid points of its guidance range of 1-3% QoQcc degrowth. All this despite June being a seasonally strong quarter and 30 bps cross-currency tailwinds. «We attribute the decline to broader weakness in financial services and high exposure to consulting services.

Yoy growth rate will slow down to a trickle. The revenue decline will have a corresponding impact on margins. We forecast 20 bps QoQ decline even as margins will likely increase on YoY comparison,» Kotak Institutional Equities said.

Analysts are expecting Wipro to give Q2 revenue growth guidance of decline of 1% at the lower end of the band and growth of 1% at the upper end of the band. “The revenue decline is likely to be led by broader weakness in financial services, hi-tech verticals, and softness in its consulting business. It would be interesting to see if the weakness has spread to other verticals as well,” said Dhruv Mudaraddi, Research Analyst, Stoxbox.Things to watch out for in Wipro results 1) Revenue growth outlook and margin guidance for Q2 of FY24.

2) Demand trends in key verticals like BFSI, consumer, manufacturing, healthcare, and E&U. 3) Outlook for consulting business (Capco and Rizing), which has been impacted due to pullback in discretionary spending. 4) Attrition and hiring plan.

5) Deal intake/pipeline, leaky bucket update, and any change in the deal pipeline’s composition in terms of cost takeouts vs. discretionary/transformational projects. 6) Any delay, deferment or cancellation of projects due to macro uncertainties.Wipro result