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Synopsis: Wipro is set to announce its Q4 FY25 results today, with expectations of a 14-22% year-on-year rise in net profit. The stock has declined over 12% since Q3 earnings and is currently trading at Rs246.60 with a market cap of Rs2.58 lakh crore.
Wipro is preparing to release its earnings for the fourth quarter of FY25 today, and the market is watching closely. Ahead of the results, the company's shares are trading flat at Rs246.60, with a total market capitalization of Rs2.58 lakh crore. The IT major has seen its stock decline by over 12% since it announced its Q3 results on January 17, when the stock had closed at Rs281.85. Since then, investor sentiment has been cautious, partly due to modest revenue growth in Q3.
In the third quarter, Wipro posted a consolidated net profit of Rs3,353.8 crore, reflecting a 24.48% increase from Rs2,694.2 crore in the same quarter last year. Revenue from operations rose marginally by 0.51%, reaching Rs22,318.8 crore compared to Rs22,205.1 crore a year ago. Despite the profit jump, the lack of strong revenue growth has led to a cooling in stock momentum.
Wipro’s shares had touched a 52-week high of Rs324.55 on January 23, 2025, and a 52-week low of Rs208.40 on June 4, 2024. Over the past year, the stock has delivered a 10% gain, and a stronger 32% return over two years. However, it is now trading below all major moving averages, including the 5-day to 200-day averages, indicating bearish short-term signals.
For Q4 FY25, market analysts expect Wipro to report a net profit increase in the range of 14-22% year-on-year. Revenues are likely to grow modestly by 1.5-2.5% over the same period. However, when adjusted for constant currency, IT services revenue is expected to remain flat sequentially, and may even show a decline of over 1% in dollar terms. The EBIT margin is projected to fall within 17.5% to 17.7%, and deal wins could range between $1.6 billion and $1.8 billion.
Brokerage firm Emkay Global projects Wipro will post a 19.3% year-on-year jump in net profit to Rs3,382 crore, along with a 1.5% growth in revenue to Rs22,659 crore. Emkay also anticipates a sequential fall of about 1% in IT services revenue in dollar terms, factoring in a 60 basis points hit due to cross-currency fluctuations. Wipro had earlier guided for Q4 revenue growth between -1% to +1% in constant currency terms.
With today’s announcement, investor attention will largely be on the revenue guidance for the upcoming Q1 of FY26. This forward outlook will play a crucial role in determining whether the stock can regain upward momentum or continue facing selling pressure.
Disclaimer: This article is meant for informational purposes only and should not be taken as investment advice. Readers are advised to consult their financial advisors before making any investment decisions.
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