Wipro may meet Q1 guidance, revenue seen up 0.7%: Poll

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Wipro, the country's third largest IT company, is expected to meet its first quarter guidance with revenue and dollar revenue rising 0.8 percent and 0.7 percent sequentially, respectively.

According to a CNBC-TV18 poll, revenue is seen rising to Rs 11,331 crore from Rs 11,242 crore and dollar revenue may inch up to USD 1,787.5 million from USD 1774.5 million.

After March quarter earnings, the company said revenue growth in Q1FY16 would be in the range of 0.5 percent degrowth to 1 percent growth at USD 1,765-1,793 million. However, the Q1 guidance had disappointed the street due to weakness in energy segment and client related issues in BFS segment.

The first quarter is a seasonally weak quarter for Wipro, though it is a strong quarter for the industry. Its peers TCS and Infosys reported dollar revenue growth of 3.5 percent and 4.5 percent, respectively.

Analysts polled by CNBC-TV18 expect the company's guidance for the September quarter at around 1.5-3.5 percent.

Earnings before interest and tax may decline to Rs 2,417.5 crore in the quarter ended June from Rs 2,478 crore in March quarter. EBIT margin may drop 67 basis points quarter-on-quarter to 21.33 percent due to wage hike (effective June 1). Analysts believe the wage hike may be partially offset by rupee depreciation.

Wipro had announced average wage hike of around 7 percent to offshore employees and around 2 percent to onshore.

The street's focus will be on headwinds in two challenged verticals, telecom and energy that contribute about 20 percent to Wipro’s revenues. Energy vertical was down 6.6 percent in Q4FY15. The management after March quarter results said energy vertical was expected to recover from October-March period of FY16 onwards and highlighted some pick-up in conversation with clients.

According to the management, the energy vertical has been witnessing pricing pressure, which may continue for at least a year. However, it seemed confident of sustaining margins through greater use of productivity improvement as pricing trends in other verticals are stable.

Meanwhile, Wipro Digital has acquired Denmark-based Designit on July 10, which is first acquisition in the ‘new tech’ space. The cost of acquisition is euro 85 million, which includes performance based pay-outs to be paid over the next three years.