Wipro Q1: Wipro, the Thierry Delaporte-led IT services firm, is scheduled to release its June quarter numbers (Q1FY24) today (July 13) post-market hours. TCS and HCL Tech have already declared their Q1 numbers, and while TCS beat Street estimates on the net profit front, the overall results were subdued. HCL Tech maintained its revenue guidance for FY24 at 6–8 per cent in constant currency (CC) terms and EBIT margin at 18-19 per cent. However, its net profit and margin were below estimates. Moreover, in its concall, TCS said it was cautious about the near-term outlook. 

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Looking at the order book, the management indicates the long-term looks confident; however, in the near term, there is uncertainty as clients are taking a month-on-month approach, Nirmal Bang Securities said, citing the management's commentary.

Let's take a look at what analysts expect from Wipro's Q1 numbers. 

According to Zee Business Research, Wipro is likely to report a consolidated net profit of Rs 2,980 crore for the quarter under review, down 3.1 per cent on a sequential basis. In the previous quarter, the company had posted a profit of Rs 3,075 crore. The company's revenue is expected to slip 1.1 per cent QoQ to Rs 22,930 crore against Rs 23,190 crore in the March 2023 quarter. The revenue in dollar terms is likely to fall 1.9 per cent to $277 crore. Consolidated earnings before interest, and tax (EBIT) is expected to rise 0.6 per cent to Rs 3,680 crore while the margin is seen at 16 per cent against 15.8 per cent. IT Services margin is seen at 16.2 per cent against 16.3 per cent in the previous quarter.

Further, the research desk said that it expects the company's revenue in constant currency (CC) terms to fall 2.2 per cent sequentially. Segment-wise, BFSI and Tech verticals will be under pressure, while in the consulting business, there will be an impact due to less spending by the clients. Key monitorables include Q2 FY24 growth guidance and the consulting business outlook.

Wipro: AI Plan

India's third-largest software services company has announced a $1 billion spending plan to train its entire 2.5 lakh employees in artificial intelligence and integrate the technology into its product offerings. The spending, over the next three years, also involves bringing 30,000 employees from the cloud, data analytics, consulting and engineering teams together to embed the technology into all internal operations and solutions offered to clients.

In a statement, the company said it "will train all 250,000 employees on AI fundamentals and responsible use of AI over the course of the next 12 months and will continue to provide more customized, ongoing training for employees in AI-specialized roles."
     
Artificial Intelligence has the potential to create trillions of dollars of value across the economy. Generative AI applications such as ChatGPT, GitHub Copilot, Stable Diffusion, and others have captured the imagination of people around the world.

Wipro share price

At the time of writing this news, the stock was trading 1.26 per cent higher at Rs 396.55 levels.