Brokerages predict that Wipro’s profits will fall ahead of its quarterly earnings announcement on Wednesday. Wipro, on the other hand, has revealed its expansion plans, which include large bets on emerging technologies. The company announced its plans to enter Web3, metaverse, artificial intelligence, and robotics at its annual general meeting on Tuesday.
Will Wipro’s earnings fall?
Despite the company’s pro-growth stance, several brokerages anticipate a drop in earnings for the fiscal quarter ended June 30.
Kotak anticipates that the tech company’s June quarter profit will fall 2.2 percent year on year to Rs 3,006.20 crore, despite a 17.2 percent increase in total revenues to Rs 21,771 crore. The stock was trading at Rs 409.55, up 1.04 per cent at 9:45 AM IST as per data from NSE.
Wipro’s profit is expected to fall 4.5 percent year on year to Rs 3,077 crore from Rs 3,232.10 crore in the previous quarter, while Ebitda margin is expected to fall to 20.4 percent from 21.8 percent.
Wipro is betting on Web3.
“We are accelerating our investments in TopCoder, our crowdsourcing platform, and in emerging areas such as the metaverse, Web3.0, robotics, self-learning AI, and privacy systems,” said Chairman Rishad Premji at the company’s Annual General Meeting on Tuesday.
The company also revealed that it has set aside $1 billion to invest in its cloud services vertical. In his address, Premji also stated that the organisation would expand its workforce in the aforementioned areas.
“We are building capabilities and acquiring market-leading talent in growth areas,” he said.
The Chairman emphasised that the company has transitioned from an industry-organized to a market-organized operating model.
Future-oriented optimism
Despite the continued weakness of global macroeconomic indicators, Premji remains optimistic about the future. “I believe that great upheavals contain the seeds of great possibilities,” he said.
“As enterprises adopt digital business models, they face significant challenges in navigating a complex ecosystem with multiple providers that are difficult to manage,” he went on to say. They require an end-to-end transformation partner to orchestrate their digital transformation. This is where we plan on playing.”
The CEO of the tech company, Thierry Delaporte, also expressed concern about the ongoing geopolitical and macroeconomic strains. “The company is keeping a close eye on the economic headwinds and geopolitical challenges,” he said.
“As companies become more sophisticated in their use of cloud technology, and as they begin to understand its benefits,” he added, “we expect demand for services to remain strong.”
Other Web3 technology companies
TCS, for example, has already entered the Web3 space. They previously stated that the company is exploring the metaverse under the direction of Ashok Maharaj, Head of TCS Extended Reality Lab.
