- Wipro’s net income for the first quarter was 30.03 billion rupees, up 4.6% from the previous year.
- This net income beat analysts’ estimates of 29.31 billion rupees.
- Revenue for the quarter was 219.6 billion rupees, a decrease of 3.8% year-over-year.
- IT services revenue stood at 219 billion rupees, also down 3.8% year-over-year.
- IT products revenue saw a sharp decline of 32%, amounting to 469 million rupees.
- Total costs were reduced by 5.1%, coming in at 186.7 billion rupees.
- Employee benefits expenses fell by 5.7% to 132.3 billion rupees, better than the estimated 135.93 billion rupees.
- Other income increased by 14% to 7.3 billion rupees.
- Despite the positive net income, Wipro shares fell 2.8% to 557.20 rupees, with 13.2 million shares traded.
- Market sentiment shows 12 buy ratings, 13 hold ratings, and 20 sell ratings on Wipro’s shares.
Wipro Ltd on Smartkarma
Analyst coverage of Wipro Ltd on Smartkarma reveals insights from Janaghan Jeyakumar, CFA. In the report “Quiddity Leaderboard BSE/SENSEX Jun 24: Jio Financial Addition Creates New Possibilities,” the analyst predicts that Wipro is likely to underperform Tata Consultancy Services in the near future. Highlighting the upcoming index rebalancing event in June 2024, the report discusses Wipro’s potential deletion from the SENSEX index and the uncertainty surrounding its replacement. Additionally, the report identifies Jio Financial Services as a potential new addition to the BSE 100 index, leading to significant changes in index expectations.
In another report by Janaghan Jeyakumar, CFA, titled “Quiddity Leaderboard BSE/SENSEX Jun 24: Who Will Replace Wipro?,” the analyst presents Wipro as a high conviction deletion candidate from the SENSEX index in June 2024. The report delves into the challenges of determining Wipro’s replacement due to conflicting size-based rankings and sectoral considerations. While the current outlook points to potential index changes for SENSEX, there remains room for adjustments during the reference period. Moreover, the report suggests the possibility of multiple additions and deletions for the BSE 100 and BSE 200 indices, indicating a dynamic market landscape.
A look at Wipro Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Wipro Ltd, a company specializing in IT and computer technologies, is forecasted to have a positive long-term outlook based on its Smart Scores. With a Value score of 3, the company is considered to be reasonably priced in the market. While the Dividend score of 2 indicates a moderate dividend performance, the Growth score of 3 suggests steady growth potential. Furthermore, Wipro’s high Resilience score of 5 signifies a strong ability to withstand market fluctuations. The Momentum score of 3 reflects a stable performance trend. Overall, Wipro Ltd is positioned well for the future with strong resilience and growth potential.
Wipro Limited’s diverse range of services, including software architecture, e-commerce, IT consulting, and consumer products, provides a solid foundation for its future prospects. The company’s Smart Scores highlight its balanced performance across different factors, indicating a stable and promising outlook in the long term. With a focus on innovation and adaptability in the rapidly evolving IT industry, Wipro is poised to leverage its strengths and capitalize on new opportunities for growth. Investors may find Wipro Ltd to be a compelling choice for long-term investment based on its overall positive Smart Scores and strategic positioning in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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