Wipro Q2 net seen up 16% at Rs 1889 cr: KR Choksey
According to KR Choksey, Wipro to report a 16 percent growth quarter-on-quarter (growth of 28 percent year-on-year) in net profit at Rs 1,889 crore.
October 22, 2013 / 09:06 IST
KR Choksey has come out with its second quarter (July-September) earnings estimates for the information & technology sector. The brokerage house expects Wipro to report a 16 percent growth quarter-on-quarter (growth of 28 percent year-on-year) in net profit at Rs 1,889 crore.
Revenues of Wipro are expected to increase by 14 percent Q-o-Q (growth of 20 percent year-on-year) to Rs 11,076 crore, according to KR Choksey.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 20 percent Q-o-Q (up 22 percent Y-o-Y) to Rs 2,409 crore.EBITDA margin or operating profit margin is likely to be at 22 percent in June quarter as against 21 percent in March quarter and 21 percent in a year ago period.KR Choksey's Report on Wipro:IT Services revenue growth is expected to be 3 percent Q-o-Q in constant currency terms (against the guidance of 2 percent to 4 percent Q-o-Q growth); whereas adverse cross currency movements will adversely impact revenue growth in USD terms by 75 bps Q-o-Q.Adverse impact of wage hike for two months will be mitigated by rupee depreciation against the major global currencies in Q2FY14E and visa cost in Q1FY14.Key factors to watch out for in the result are revenue guidance (in USD terms) for Q3FY14E and large deal signing activity.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 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!
