Wipro Q2 net profit seen up 2.9% at Rs 1,044.8 cr

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Wipro is set to announce its Q2FY10 results. According to CNBC-TV18 estimates, its net profit is expected to go up 2.9% at Rs 1,044.8 crore versus Rs 1,015.5 crore, as per the Indian GAAP, on quarter-on-quarter basis (QoQ).

Revenues are seen going up 4.7% at Rs 6,569.6 crore versus Rs 6,247 crore. EBIDTA (earning before interest, depreciation, tax and amortisation) is likely to go up at Rs 1,340.9 crore versus Rs 1.339.3 crore. Margin is seen declining to 20.4% versus 21.3%.

Q2 Guidance
IT revenues seen at $1035-1053 million vs 1033 million

Factors to watch out for:

-Expect 3.1% sequential growth in US $ revenue to US $ 1,065 million aided by cross currency benefit of 1.4%
-Constant currency growth of 1.4%
-Expect pricing to remain under pressure and could decline 0-4% in FY10e
-Global IT operating margins likely to improve QQ despite promotions given in the quarter
-Hedge position (including undesignated, non-integral operations and cross-currency interest rate swaps) was US $ 2.2 billion as of June 30, 2009; Hedging loss of US $ 260 million in Balance Sheet as on 30th June 2009
-Expect Wipro to guide for a 0-2% sequential revenue growth for the December 2009 quarter
-Company would speak of lower working days and some shutdowns at client levels for lower growth guidance
-Expect investor focus on (1) hiring status; Wipro had deferred the joining dates of its campus joinees, (2) commentary on the demand outlook in key verticals like BFSI, TSP, and Telecom OEMs, and (3) trends on pricing renegotiations