Wipro Q4 Preview: IT major may guide for 0-2% growth; CEO exit commentary key

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based Wipro Ltd. is likely to guide for 0% to 2% revenue growth in the first quarter of financial year 2025, according to a CNBC-TV18 poll.

This will also be the first earnings meeting under the new CEO Srinivas Pallia, who took charge after outgoing CEO Thierry Delaporte stepped down earlier this month, nearly 15 months before the end of his five-year term.

A CNBC-TV18 poll shows US dollar revenue will see a marginal decline. In case that happens, it will be the fifth straight quarterly revenue drop for Wipro. Constant currency growth is also seen lower by 0.3% compared to the December quarter. The company has guided for this growth to be in the range of a 0.5% growth to a 1.5% decline.

Among the key factors that the Street will await commentary on will be the reasons for which Thierry Delaporte stepped down before the completion of his term.

Another major factor on which clarity will be awaited is the company’s strategy under its incoming CEO and Wipro veteran Srinivas Pallia.

During the December quarter earnings conference, Wipro’s management spoke about green shoots seen in discretionary spending. It remains to be seen whether that has translated into numbers of any form and whether that trend is likely to continue for the quarters ahead.

Additionally, Wipro’s Capco acquisition had seen double-digit sequential growth in overall order intake. Commentary will also be awaited on whether the recovery in the Capco vertical has continued or was just a flash in the pan.

Wipro has also reported five consecutive quarters of headcount reduction. This will be a keenly awaited metric as TCS reported a headcount reduction in a financial year for the first time in decades, while Infosys’ attrition rate dipped on a sequential basis.

For Wipro, attrition during the December quarter had moderated further to 14.4% from 15.5% in the September quarter.

Shares of Wipro have declined 10% over the last month ahead of its results. The stock has risen 23% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow