The IT company is expected to report 1.5-2.0 percent growth in dollar revenue and around 1.2-1.6 percent growth in constant currency terms
Wipro, which will announce its March quarter earnings on April 16, is expected to report a mixed set of numbers. One of the key things to watch out for is the announcement of expected share buyback.
The stock is down 2 percent after ahead of its earnings announcement. The company also said it has detected abnormal activity in a few employee accounts. It said the company has begun a probe and taken remedial steps to contain and mitigate any potential impact.
The IT company is expected to report 1.5-2.0 percent growth in dollar revenue and around 1.2-1.6 percent growth in constant currency terms which would be within its guidance of 0-2 percent led by continued momentum in BFSI and digital segment.
"We expect constant currency revenue growth rate of 1.5 percent and cross-currency tailwind of 40 bps. Financial services growth rate could moderate from the recent quarter growth of 17 percent YoY. Spending outlook in financial services is a lot more muted than the same time last year," Kotak said.
Phillip Capital expects IT services constant currency revenue growth of +1.5 percent - near the higher-end of adjusted guidance of 0-2 percent and positive cross currency impact of 20bps.
Brokerages expect the company to give constant currency revenue growth guidance in the range of 0-3 percent.
Kotak expects Wipro to guide for 0.5-2.5 percent revenue growth for June 2019 quarter which is seasonally weak for the company while Phillip Capital sees the same in the range of 0-2 percent.
According to Motilal Oswal, the IT firm may guide for 1-3 percent QoQ growth in constant currency revenue and a small decline in margins due to one-month of wage hikes.
Brokerages expect its operating performance for the March quarter to be weak with contraction in margin.
HDFC Securities expects the company's EBIT margin to decline 64bps QoQ to 19.2 percent, while ICICI Securities sees margins dipping 40 bps QoQ to 19.4 percent from a high base of 19.8 percent attained in Q3FY19.
Key issues to watch for
- performance of healthcare vertical
- comments on sustenance of growth in BFSI vertical
- sustainability of margin recovery achieved in the last two quarters- FY20 demand outlook and the quantum of buyback.