Wipro, one of the largest IT companies in India, is expected to register a 1 percent growth in constant currency dollar revenue in Q3 compared with previous quarter.
IT services revenue in dollar terms may grow 0.14 percent sequentially to USD 1,919 million and rupee revenue is seen rising 0.6 percent to Rs 13,215 crore in the quarter gone by, according to average of estimates of analysts polled by CNBC-TV18.
The IT firm had guided Q3 constant currency revenue growth in range of 0-2 percent, including 1 month contribution of Appirio acquired in November.
Analysts say absence of the wage increase headwind should help margin but this would be offset by the negative currency impact and some dilution from Appirio.
EBIT (earnings before interest and tax) is likely to decline 0.7 percent quarter-on-quarter to Rs 2,320 crore and margin may contract by 25 basis points to 17.55 percent in Q3.
Analysts expect dollar revenue growth guidance at 2.5-4.5 percent for fourth quarter of current financial year. They feel two months contribution of Appirio revenue will aid Q4.
Key factors to watch out for would be any rebound in large segments like IMS/BFSI/retail/manufacturing, where the company underperformed peers; recovery in energy vertical; and any signs of stability on margins, which have fallen as growth has faltered.
The year 2016 was challenging for the company with the stock down 15 percent as growth remained weak and margin dropped due to acquisitions and restructuring.
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