Wipro is likely to see dollar revenue at USD 1923.5 million in July-September down 0.4 percent from USD 1930.8 million in last quarter. According to a CNBC-TV18 poll, in rupee terms Q2 revenue may also slip 1.5 percent at Rs 12910 crore against Rs 13109 crore in quarter-ago period.
In constant currency terms, growth is seen at 0.5-0.7 percent, which is within company's guided band of 0-1 percent at USD 1931 million-USD 1950 million. Cross currency headwind may to be 100-120 basis points. During the period, EBITDA may stand at Rs 2200 crore compared to Rs 2327 crore (QoQ). In percentage, EBITDA may come in at Rs 17.04 percent against 17.75 percent on sequential basis. Margins may fall 70 bps due to two month impact of wage hikes while Q3 onwards may see margin improvement.
Key things to watch:#1 Recovery in the energy vertical: Energy contributed 13.2 percent to overall revenues as of Q1. However revenue contribution from energy has been coming down, 2 years ago it was at 16-17 percent.
Energy has reported a decline for the last seven quarters.
#2 Financial services did well in Q1 with a growth of 3.5 percent after two quarters of de-growth.
#3 Management commentary stable demand environment and they are capturing market share
#4 Client mining has been weak
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!
