Wipro shares were trading in the green on July 14, a day after the tech services giant posted earnings for the April to June 2023 quarter. The numbers were mostly in line with muted estimates.

Share Market Live

NSE

At 9:24 am, Wipro shares were trading at Rs 394.85, a marginal rise of 0.13 percent, on the BSE.

The IT behemoth reported a revenue of Rs 22,755 crore for the three-month period, marginally lower than the CNBC-TV18 poll estimate of Rs 22,874 crore. It was also 1.8 percent lower than Rs 23,176 crore recorded in the preceding quarter.

Morgan Stanley believes that Wipro’s revenue growth in the first quarter of the fiscal year has decelerated more sharply than its peers. The brokerage also said that until the growth gap narrows, it expects the price-to-earnings ratio (P/E) discount to remain higher versus peers.

Brokerage firm Nomura, meanwhile, pointed out that growth had been affected by low discretionary spending, which is affecting the consulting portfolio. It said that this weakness is likely to continue in the near term and margin improvement, too, is unlikely in 2023-24.

Also Read: TCS vs Wipro vs HCL Tech shares: Which IT blue-chip stock to buy after Q1 results?

Thierry Delaporte, CEO and Managing Director, in a press briefing after the release of the earnings report, admitted, "All around us businesses have been reducing discretionary spends in response to the weak macro environment. This has had an impact on our revenues as well."

Jefferies, on the other hand, said Wipro’s deal wins were soft during the quarter under review and the growth guidance range of -2 percent to 1 percent is not comforting. Therefore, the global brokerage has lowered its revenue estimate by 1-2 percent and cut earnings estimates by 2-3 percent. It expects the company to deliver 6 percent earnings compound annual growth rate (CAGR) over FY23-25.

However, CEO Delaporte said he was confident that Wipro's long-term business strategy is correct and will keep it competitive and resilient in the future.

Also Read: Wipro sees net reduction in workforce, attrition slips to eight-quarter low

Track the latest stock market updates on CNBCTV18.com's blog

First Published:Jul 14, 2023 9:37 AM IST