Wipro, a Bengaluru based IT giant reported its quarterly results on Wednesday 12th October 2022. The revenue from operations of Rs 22540 crore which is a 15 percent growth in comparison with the same quarter of the last year.
Walkthrough of Quarterly Earnings
Wipro reported a drop of 9 percent in consolidated net profit to Rs 2649 crore for the quarter that ended on September 30, 2022.
Sequentially, the revenue has risen by 5 percent from Rs 21,529 crore in the previous quarter. Profit was up 4 percent from Rs 2559 crore in the previous quarter.
Wipro said the IT services segment revenue was at $2,798 million, a rise of 8.4 percent year on year. Constant currency IT services segment revenue has increased by 4 percent quarter on quarter and 13 percent year on year.
Majority of the numbers show a poor performance and they are severely below expectations.
Wipro’s order bookings (Total Contract Value) during the quarter grew by 24 percent YoY. Large deal bookings – meaning deals greater than or equal to $30 million – grew by 42 percent YoY in H123.
“The solid growth in our bookings, large deal signings, and revenues underscore our improved market competitiveness and enhanced value proposition,” said Thierry Delaporte, CEO and Managing Director, Wipro.
Wipro in its outlook for the December quarter said it expects revenue from our IT services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5 percent to 2.0 percent.
Wipro has been stagnating on its 61.8% retracement level for many months. This level seems unbreakable as the stock has taken support at Rs 381 on multiple occasions. MFI is 38 which indicates the stock is oversold but this has been for many months.
A breakdown below the 61.8% level is unlikely, but the company has reported poor quarterly earnings results, the breakdown has a faint possibility in which the stock will plummet into a severe bearish move.
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