Wipro Q2 Results Preview: Profit Expected To Dip, Margin Revenue To Rise

Wipro, set to announce its earnings for the second quarter of the current financial year on Thursday, is expected to see improvement in revenue, while profits might dip marginally. 

The IT services firm's net profit may fall 0.2% sequentially to Rs 2,996 crore in the quarter ended September, according to a consensus of analysts' estimates tracked by Bloomberg.

Wipro Q2 FY25 Earnings Estimates (Consolidated, QoQ)

• Revenue may rise 1.4% to Rs 22,271 crore.

• Ebit may come in flat at Rs. 3,625 crore.

• Margin expected to be flat at 16.3% 

• Net profit may fall by 0.2% to Rs. 2,996 crore.

BofA and Morgan Stanley expect Wipro to guide for constant currency revenue growth of −0.5% to 1.5% for the third quarter, on the back of healthy deal wins. 

Brokerages note that the second quarter margins will be impacted due to the wage hike. Operational efficiencies and favourable foreign exchange will likely aid 35 basis points sequential expansion in EBIT margin to 16.8%, according to JM Financial. 

On demand, ICICI Securities notes that demand commentary has not improved with continued pressure on discretionary spends. However, some green shoots in consulting, in line with superior Capco performance in Q4FY24 and Q1FY25, are expected. Q2 is estimated to fare better than Q1. Energy and utility verticals are estimated to be soft, with large deals coming to an end, the broking added. 

Management commentary on steps towards the long-term plan under the new management, demand trajectory in the consulting business Capco, trajectory in the BFSI space, and update on healthcare, retail, and energy and utilities verticals is to be watched out for. 

In Q1, large deal bookings stood at $1,154 million, and total bookings were at $3.28 billion. Ahead of Q2 results, ICICI Securities notes that there is some decline in large deal announcements QoQ in Q2, with some deals from hi-tech and ER&D.