Wipro, one of the largest IT services providers in India, is expected to report 2 percent sequential growth in dollar revenue for quarter ended September 2015. According to a CNBC-TV18 poll, dollar revenue may increase to USD 1,830 million during the quarter from USD 1,794.1 million in preceding quarter. The company will announce its earnings on October 21.
Analysts expect cross currency headwinds at around 70-80 basis points. Hence, constant currency growth in dollar revenue may be around 2.7-2.8 percent (including some contribution from Designit acquired during the quarter), which is within the company guided range of 1.5-3.5 percent (USD 1821-1,857 million) for Q2FY16.
They expect drag from energy (contributes around 15 percent to revenue) to ease in September quarter.
Revenue in rupee terms is expected to be Rs 12,003 crore during the quarter, up 3.7 percent over Rs 11,577 crore in preceding quarter.
Operating profit (earnings before interest, tax, depreciation and amortisation) may increase 1.8 percent quarter-on-quarter to Rs 2,472 crore but margin may fall 40 basis points to 20.6 percent as headwind from two months of wage hike is likely be offset by rupee depreciation and productivity gains.
Wipro in June had announced average wage hike of around 7 percent to offshore employees and around 2 percent to onshore employees.
Analysts expect the company to announce its Q3 dollar revenue guidance in 2-4 percent growth range or 1.5-3.5 percent. According to them, sub 1.5 percent dollar revenue growth guidance may be a disappointment.
There was a decline in revenue from top client and healthcare business, which may return to growth in Q2, feel analysts.
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