Wipro Q1 net may fall 8.3% at Rs 1592.5 cr: Motilal Oswal
Motilal Oswal expects Wipro to report a 8.3 percent degrowth quarter-on-quarter (growth of 0.8 percent year-on-year) in net profit at Rs 1592.5 crore.
July 25, 2013 / 17:33 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the information technology sector. The brokerage house expects Wipro to report a 8.3 percent degrowth quarter-on-quarter (growth of 0.8 percent year-on-year) in net profit at Rs 1592.5 crore.
Revenues are expected to decrease by 10.3 percent Q-o-Q (down 7.1 percent Y-o-Y) to Rs 9893.2 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 7.7 percent Q-o-Q (down 5.1 percent Y-o-Y) to Rs 2033.3 crore.Motilal Oswal report on WiproWipro had guided for 1QFY14 revenue growth band of -0.6-1.6 percent Q-o-Q, implying USD revenue of USD1,575-1,610 million. We model revenue growth of 0.3 percent Q-o-Q to USD1,597 million, factoring 60bp negative impact from cross currencies. We expect SGA to be 12.3 percent (v/s 12.5 percent in 4Q) and EBIT margin to expand 30bp QoQ to 18.1 percent. Our PAT estimate for the quarter is INR15.73 billion, decrease of 0.1 percent Q-o-Q v/s INR15.75 billion from continued business last quarter. Wipro would be expected to guide for some acceleration in revenue growth in constant currency, following commentary on pick-up in deal signings in the past couple of quarters. We expect the company to guide for 1QFY14E revenue growth band of 1-3 percent Q-o-Q. The stock trades at 12.2x FY14E and 11.1x FY15E earnings. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
