October 12, 2016 / 17:54 IST
Kotak Securities has come out with its second quarter (July-September) earnings estimates for the Technology sector. The brokerage house expects
Wipro to report net profit at Rs 1948.3 crore, down 5 percent quarter-on-quarter.
Net Sales are expected to decrease by 2 percent Q-o-Q (up 6.9 percent Y-o-Y) to Rs 13428.4 crore, according to Kotak Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 6.3 percent Q-o-Q (down 7.4 percent Y-o-Y) to Rs 2577.2 crore.
Kotak Securities' report on WiproWe expect c/c revenue growth of 0.5% at mid-point of guidance of 0-1%. Revenues will decline 0.5% in US Dollar terms. We expect c/c revenue growth guidance of 0-2% for Dec 2016 quarter.We expect IT services EBIT margin to decline 120 bps qoq due to full quarter impact of wage hike and cross-currency headwind. A sharp decline in IT services EBIT margin on yoy basis is partly due to amortization charge of intangibles pertaining to acquisitions under IT services segment (reported under reconciling items earlier).
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