Here's what to expect from Wipro Q3 earnings

Moneycontrol Bureau

Software services exporter Wipro will report its third quarter results on Friday. Its rivals Tata Consultancy Services, Infosys and HCL Technologies all reported bettered street expectations and now all eyes will be on WIpro to deliver strong growth too. The company has had a management rejig in recent past, and has also announced restructuring of its operations, de-merging its consumer care business into a separate company so that it can then focus more on the IT business, which anyways accounted for a majority of its earnings. According to a poll by CNBC Awaaz, analysts expect Wipro to report a net profit of Rs 1,615 crore, up 0.2 percent quarter-on-quarter, while revenue is seen up 2.6 percent at Rs 10,922.7 crore. In US dollar terms, IT services revenue is expected to be around USD 1,574 million, up 2.1 percent. Motilal Oswal expects Wipro's IT services EBIT margins will decline 40 bps sequentially to 20.3 percent, while overall EBIT margins are seen down 50 bps to 16.9 percent. It is also expecting the company to guide for 1-3 percent US dollar revenue growth in the fourth quarter. Prabhudas Lilladher too expects Wipro's EBITDA margins to decline due to lower working days and on site ramp-ups. However, it is expecting management commentary on strategy to perform ahead of Tier-1 competitors. Key things to Watch -- Volume growth in the quarter in IT services
-- Deal wins in the quarter
-- Margin performance and pricing trends
-- Guidance for the fourth quarter
-- Comments on clients budgets and discretionary spending
-- Trends in FY2014
-- Growth plans Stock Watch Wipro shares closed up 2.6 percent at Rs 430.70 on NSE on Thursday. Since Sep 30, the stock has gained 13 percent, outperforming the wider Nifty index, which has gained 6 percent.