Shares of Wipro Ltd. will be in focus on Thursday as the IT services company is scheduled to report its June-quarter earnings.
Investors will monitor the company's revenue, profitability and guidance for the current quarter amid an uncertain demand environment. Management commentary on client spending, artificial intelligence adoption, wage hikes, large deal execution, recent acquisitions and attrition will also be in focus.
The stock closed 1.4% lower at Rs 174.65 on the NSE on Wednesday. During the session, the Nifty 50 rose 0.11%, while the Nifty IT index fell 0.7%.
Also Read: Wipro Q1 Preview: Salary Hikes Set To Impact Margin; Guidance, Demand Outlook, AI Spending In Focus
Estimates Point To Softer Profitability
According to Bloomberg estimates, Wipro's consolidated revenue is expected to rise about 2% quarter-on-quarter to Rs 24,730 crore from Rs 24,236 crore.
Profitability, however, is expected to remain under pressure as companies continue to limit discretionary technology spending.
Bloomberg estimates project earnings before interest and tax (EBIT) to decline 1% sequentially to Rs 4,113 crore. The EBIT margin is expected to ease to 16.63% from 17.18% in the March quarter.
Net profit is estimated at Rs 3,466 crore, compared with Rs 3,502 crore in the previous quarter.
Bloomberg estimates also indicate attrition could be 14.86% during the quarter, while the employee count is projected at 249,422.
Most brokerages expect Wipro's core IT services business to remain weak, reflecting subdued discretionary spending and slower conversion of large deals.
Also Read: Wipro Q1 Results Today: Should You Buy, Sell Or Hold Shares Amid Weak-Quarter Preview?
Shares Trail Benchmark Over The Past Year
Wipro shares have remained under pressure over the past year.
The stock has declined 33.5% over the past 12 months, compared with a 4.4% fall in the Nifty 50 during the same period.
Although the shares recovered briefly in the past week, Wednesday's decline erased part of those gains.
The stock has traded in a 52-week range of Rs 169 to Rs 273.
Wipro's market capitalisation stood at Rs 1,79,981.23 crore at the close of the previous trading session.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.