Wipro Q4 dollar revenue seen down 0.2% to $ 1791.5 m: Poll

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26 Aug, 2025 12:21

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Wipro will announce its fourth quarter earnings on Tuesday. India's third-largest IT services exporter is likely to report a 0.2 percent decline in dollar revenues, according to the average of estimates of analysts polled by CNBC-TV18.

The poll sees dollar revenues at USD 1791.5 million during January-March quarter against USD 1795.4 million in previous quarter, but in constant currency, dollar revenues may see 2 percent growth (that is in the middle of company's guided range for March quarter).

After December quarter earnings, Wipro had said it expects 1-3 percent growth in Q4FY15 dollar revenues at USD 1814-1850 million.

Meanwhile, rupee revenues may increase 0.5 percent sequentially to Rs 11,399 crore during the quarter.

Operating performance is also likely to be weak in March quarter with earnings before interest and tax (EBIT) falling 4.25 percent at Rs 2,365 crore and EBIT margin at 20.74 percent against 21.77 percent on sequential basis due to cross currency impact.

Utilisations, which dropped by 150 basis points in Q3FY15, could bounce back during January-March quarter, feel analysts.

They expect the company to forecast its Q1FY16 dollar revenue growth at 1-3 percent over Q4FY15 as they believe weakness in energy vertical, seasonality issue and cross currency may impact dollar revenue guidance.

Wipro's energy vertical contributed around 16 percent to revenue and declined 0.9 percent in Q3FY15. Even TCS has highlighted energy as one of the three key challenge areas, but Wipro's management remained optimistic about the medium term prospects of this energy vertical due to cost optimisation imperatives.

As far as its next financial growth is concerned, Bank of America Merrill Lynch expects Wipro to deliver around 11 percent constant currency growth in FY16 against around 9 percent in FY15.

Key things to watch out for would be quality (broad-based) of revenue growth and rationale & strategy behind the recent change in organisational structure (appointment of chief operating officer) and changes to the executive council.