Wipro may report 2.5% growth in Q2 dollar revenue: Poll

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26 Aug, 2025 12:21

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Software services exporter Wipro is expected to report a 2.45 percent growth in second quarter dollar revenue at USD 1,783 million (on Wednesday) compared to USD 1,740.2 million in previous quarter (which is within the company's guidance of 1.7-4 percent), according to the average of estimates of analysts polled by CNBC-TV18.

IT services revenue in rupee terms may jump 3.08 percent sequentially to Rs 10,832 crore in the quarter ended September 2014 from Rs 10,508.3 crore in June quarter.

Earnings before interest and tax are likely to increase marginally to Rs 2,428.5 crore from Rs 2,400.3 crore but margin may decline 44 basis points to 22.4 percent from 22.84 percent during the same period.

The fall in margin may be due to impact of wage hikes for two months (wage hike effective June 2014) that may partially offset by productivity gains and rupee depreciation (versus USD). Even Q1 margin was down by 170 basis points from 24.5% to 22.8 percent Q-o-Q.

According to the poll, Wipro may expect its October-December quarter dollar revenue to grow in 2-4 percent range led by ramp-up in recent deal wins and better seasonality.

While Q3 and Q4 are seasonally weak quarters for the industry, Wipro performed well in October-March period. In Q3FY14, company's dollar revenue grew 2.9 percent as against TCS at 3 percent and Infosys at 1.65 percent. In Q4FY14, Wipro grew at 2.5 percent versus Infosys at negative 0.4 percent and TCS at 1.9 percent.

Key things to watch out for are deal wins (that is not translating into revenue growth, growth in America and Europe businesses, infra management services, retail and transportation segments, attrition and revenues from top 5 customers and top 10 customers.