Wipro Edges Lower Ahead of Potential Buyback, Q4 Earnings As Street Braces for Muted Show

Mumbai, April 16: Shares of Wipro edged lower as investors turned cautious ahead of the company’s March-quarter earnings announcement onThursday outside of market hours, with expectations of a subdued performance keeping sentiment in check.

The stock edged down 0.25% at Rs 209.22, even as broader markets remained firm, reflecting a wait-and-watch approach among investors ahead of key announcements, including quarterly results and a potential share buyback. The IT major is scheduled to report its Q4 earnings today, and the Street is bracing for a mixed set of numbers.

Profit Pressure

Analysts expect revenue growth to remain modest, while profitability could come under pressure due to higher costs and continued weakness in discretionary spending. Estimates suggest that net profit may decline on a sequential basis, weighed down by margin pressures stemming from wage hikes and ongoing investments.

The cautious sentiment around the stock also stems from broader concerns that have dogged the company in recent quarters. Wipro has lagged peers in terms of deal wins and revenue visibility, with slower conversion of orders into billable revenue impacting growth momentum.

Metrics Eyed

Investor focus is now squarely on key metrics such as deal bookings, margin trajectory, and management commentary on demand trends—particularly in core markets like the US and Europe. Any signals of recovery in discretionary spending or improvement in deal pipelines could act as a trigger for the stock.

Adding a layer of intrigue is the possibility of a share buyback, which the company’s board is expected to consider alongside its results. Such a move could provide some support to the stock, especially at a time when valuations have come under pressure and the shares have underperformed the broader IT pack.

Lingering Concerns

Despite intermittent rallies, the stock remains significantly below its recent highs, reflecting lingering concerns about growth visibility and execution. Over the past few months, Wipro has been among the weaker performers in the IT space, weighed down by cautious guidance and sectoral headwinds.

The near-term direction for the stock will likely hinge on the earnings outcome and management outlook. A better-than-expected performance or a strong capital return announcement could help revive sentiment, while any disappointment on growth or margins may keep the stock under pressure.

For now, the market appears to be taking a guarded stance—nudging the stock lower, but holding back from aggressive selling until the numbers are out.

Source:

• NSE