Wipro shares in focus ahead of Q2 result; bonus issue eyed

Its peer Infosys will also release the September quarter results today. 

Most analysts, as per news reports, expect decent net profit growth for Wipro; however, margin and revenue are likely to be flat due to softer deals and the impact of the one-month wage hike. 

The Street will closely monitor Wipro’s revenue guidance and commentary on the demand environment. 

Analysts expect the Bengaluru-headquartered firm to perform better than its guided range of -1% to +1%, as per reports.

Wipro posted a 4.6% year-on-year rise in its consolidated net profit for the June quarter at ₹3,003.2 crore. The Q1 FY25 revenue of the Bengaluru-headquartered firm fell 3.8% to ₹21,963.8 crore.

The firm gave a rather flat outlook for the quarter ending September 2024 and said it expects revenue from the IT services business segment to be in the range of $2,600 million to $2,652 million, translating to a sequential guidance of (-)1% to +1% in constant currency terms.

Wipro's top management said the company was poised better than it was at the start of the June quarter.

"As we move into Q2, we believe that we are in a better position compared to the start of Q1. For Q2, we are guiding for a sequential revenue growth of -1.0% to +1.0% in constant currency."

“We are confident that we can sustain our margins within a narrow band with an upward bias in the coming quarters," Srini Pallia, CEO and managing director of Wipro, said.

On a year-to-date basis, Wipro shares have gained over 11%, while in the past 12 months, the stock price has risen over 29%.