Ahead of big tech giant, Wipro’s quarterly earnings announcement on Wednesday, brokerages predict its profits could slip. Wipro has however disclosed its expansion plans with high bets placed on emerging technologies. In its annual general meeting held on Tuesday, the company announced its plans to foray into Web3, metaverse, artificial intelligence, and robotics.
Will Wipro’s profits slip?
Despite the company’s pro-growth approach, several brokerages estimate that the company may report a fall in the bottomline for the quarter ended June 30.
Kotak predicts that the June quarter profit of the tech company might slip 2.2 per cent YoY to Rs 3,006.20 crore on a 17.2 per cent rise in total revenues at 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.
Emkay Global expects Wipro’s profit to fall 4.5 per cent YoY to Rs 3,077 crore from Rs 3,232.10 crore in the year-ago quarter while it sees Ebitda margin to fall to 20.4 per cent from 21.8 per cent YoY.
Wipro bets on Web3
Chairman Rishad Premji announced during the company’s Annual General Meeting on Tuesday, “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.”
The company revealed that they have set aside $1 billion to invest in their cloud services vertical as well. Premji also noted in his address that the organisation would also expand its workforce in the above-mentioned areas.
He said, “We are building capabilities and acquiring market-leading talent in growth areas.”
The Chairman stressed that the company has restructured its operating model from being industry-organised to market-organised.
Optimistic about future
Premji remains optimistic about the future outlook despite the ongoing weak global macroeconomic cues. He said, “I believe that great upheavals carry within them the seeds of great possibilities.”
He further added, “As enterprises adopt digital business models, they face significant challenges in navigating a complex ecosystem with multiple providers that are difficult to manage. They need an end-to-end transformation partner to orchestrate digital transformation for them. This is where we intend to play.”
Thierry Delaporte, the CEO of the tech company also expressed caution on the ongoing geopolitical and macroeconomic strains. He said, “The company is keeping a close watch on the economic headwinds and geopolitical challenges.”
He also added, “As companies become more sophisticated in the use of cloud technology, and as they start to understand its benefits, we expect the demand for services to remain strong.”
Other tech companies in Web3
Tech giants like TCS have already entered the Web3 space. They previously announced that the company is working on foraying in the metaverse under the guidance of Ashok Maharaj, Head of TCS Extended Reality Lab.
Also Read: What is crypto gas fee, and how do NFT creators negotiate? Find out. – BusinessToday
Also Read: Crypto markets in green for second day in a row; Bitcoin, Ethereum up – BusinessToday
