Wipro, which is scheduled to report its results for the quarter ended December 2017, might report 1 percent rise in dollar revenue to USD 2.03 billion, compared to USD 2.01 billion reported in the previous quarter.
The rupee revenue is likely to climb by 2.9 percent for the quarter ended December 2017 to Rs 13,553 crore, aided by acquisitions compared to Rs 13,169 crore reported in the previous quarter, according to CNBC-TV18 estimates.
The earnings before interest and tax is likely to fall slightly to 17.1 percent in Q3 compared to 17.3 percent reported in the previous quarter.
Wipro will have cross-currency headwind of about 100 bps on a QoQ basis due to the depreciation of AUD and CAD versus base quarter exchange rates used for guidance, said the poll.
Analysts estimate Q3 guidance to remain muted. The Q3 guidance is likely to be in the range of 0-2 percent growth in dollar term (2.01 bn dollars to 2.05 bn dollars).
Here what other brokerages are recommending:
Edelweiss expects Wipro to post 1.4 percent QoQ revenue growth in USD as well as in constant currency (cc) terms. The absence of 2-month wage hike impact (present in Q2FY18) and marginal appreciation of INR are expected to lead to mere 20bps QoQ margin expansion, as the quarter will be impacted due to seasonal furloughs.
The management commentary on matching industry-level growth from Q4FY18, update on India & Middle East markets post restructuring, traction in Energy & Utilities and BPM verticals will be keenly analysed. The stock price has rallied over 20 percent in past 6 months.
Sharekhan expects revenue growth of 0.8 percent on a QoQ basis on CC basis which is well below the mid-point of revenue growth guidance band of 0-2 percent QoQ.
The domestic brokerage firm expects cross-currency tailwind of 20 bps on dollar revenue growth. It believes that revenue growth will be impacted due to seasonal furloughs and weakness in healthcare (regulatory issues in the U.S.) and communication vertical (client-specific issues).
Sharekhan expects EBIT margin in IT services would remain flat on a QoQ basis, led by operational efficiencies and absence of two-month wage hike impact, offset by lower revenue growth during the quarter.