Moneycontrol
Last Updated : Oct 17, 2017 03:45 PM IST | Source: CNBC-TV18

Wipro Q2 dollar revenue seen up 2.4%, EBIT margin may be flat

Analysts expect earnings before interest and tax (EBIT) at 16.6 percent for the quarter against 16.8 percent in previous quarter as operating efficiencies and cross currency tailwinds, partly offset by impact of wage revision effective June.

CNBC TV18 @moneycontrolcom

Software firm Wipro is expected to report dollar revenue at USD 2,020 million for quarter ended September 2017, up 2.4 percent over previous quarter.

Revenue growth in constant currency terms may be at around 0.9 percent for the quarter.

While announcing first quarter earnings, the company had estimated revenue growth in constant currency terms at 0.5-1.5 percent at USD 1,962-2,001 million due to pressure in healthcare vertical and sluggishness in communications and retail.

Total rupee revenue during the quarter is seen rising 1.6 percent sequentially to Rs 13,890 crore while its IT services revenues are expected to be around Rs 13,200 crore, according to average of estimates of analysts polled by CNBC-TV18.

Growth may be aided by large deal ramp-ups in the BFS vertical.

Analysts expect earnings before interest and tax (EBIT) at 16.6 percent for the quarter against 16.8 percent in previous quarter as operating efficiencies and cross currency tailwinds, partly offset by impact of wage revision effective June.

They expect a cross currency tailwind of 120-150 bps.

Key things to watch out for:-
> Outlook for healthcare, BFSI, energy vertical
> Positioning in digital and progress in large digital deals
> Growth from top 10 accounts and increase in USD 50 mn/USD 100 mn+ clients

> Measures taken to defend share in core areas of competence i.e. IMS, ERD and BPO

The stock has outperformed other IT majors this year, up 23 percent from the beginning of year. It has been partially supported by buyback announced last quarter which was better than expectation.
First Published on Oct 17, 2017 02:44 pm
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