Q3-FY24 Wipro Ltd. Result Analysis

Earnings Snapshot

(Methodology: Green=Increased, Red=Decreased, N/A= Inc/Dec beyond 100%
Operating Expense= Total Expenses-Depreciation-Finance Cost)

Analysis

Revenue from Operations

1. Wipro has experienced a Q-o-Q decline in revenue by 2.2% and a Y-o-Y decline of 4.5%. 
2. The decrease in revenue might be due to various factors, including changes in market demand, competition, or external economic conditions.

Operating Profit

1. Wipro's operating profit has increased Q-o-Q by 2.1%, but it has declined significantly by 13.5% on a Y-o-Y basis. 
2. This decrease could be attributed to factors such as increased costs or changes in the business environment affecting profitability.

Operating Profit Margin   

1. The operating profit margin has improved Q-o-Q, but it has declined Y-o-Y. 
2. This suggests that while there was a temporary improvement in profitability in the recent quarter, the overall trend shows a decrease in the operating profit margin compared to the same quarter last year.

Net Profit

1. Wipro's net profit has decreased both Q-o-Q and Y-o-Y. The decline is more significant on a Y-o-Y basis, indicating challenges affecting the company's bottom line. 
2. This could be due to higher expenses or changes in business dynamics.

Net Profit Margin

1. The net profit margin has remained relatively stable Q-o-Q but has declined Y-o-Y. 
2. This suggests that the company is facing challenges in maintaining profitability compared to the same quarter last year.

Earnings Per Share (EPS)

1. The basic EPS has declined both Q-o-Q and Y-o-Y. This decrease indicates lower earnings attributable to each share, which might be a concern for investors.
2. Similar to the basic EPS, the diluted EPS has also decreased, reflecting a reduction in overall earnings on a per-share basis.

Conclusion

Wipro result are better than expected, the competitor like Infosys reported 7.3% Decline in net Profit, while TCS, HCL reported 8.2%, 6.2% Increase in consolidated profit in this quarter as of now.

Wipro Limited has faced challenges in Q3-FY24 with a decline in revenue, operating profit, net profit, and EPS compared to the previous quarter and the same quarter last year. The company is experiencing a reduction in profitability, and it's essential to closely monitor the factors influencing these trends, such as cost management and market conditions. Investors and stakeholders may seek further insights into Wipro's strategies to address these challenges and restore growth.