Wipro Q4 net may fall 0.8% at Rs 2215.3 cr: Motilal Oswal

Motilal Oswal has come out with its fourth quarter (January-March) earnings estimates for the technology sector. The brokerage house expects Wipro to report a 0.8 percent degrowth quarter-on-quarter (degrowth of 2.6 percent year-on-year) in net profit at Rs 2215.3 crore.Revenues are expected to increase by 6.8 percent Q-o-Q (up 13.1 percent Y-o-Y) to Rs 13735.4 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 9.5 percent Q-o-Q (up 6.3 percent Y-o-Y) to Rs 2926.6 crore.Motilal Oswal's Report on Wipro:We expect revenue growth of 4.3 percent in constant currency terms (2pp organic and 2.3pp from acquisitions), and a negative impact of 40bp on account of depreciation of GBP against the USD.In 3Q, WPRO had guided for 2-4 percent Q-o-Q growth in 4Q, which included the integration of Cellent and Viteos, which implied 0.5-2.5 percent Q-o-Q organic growth. However, due to delays in the integration of Viteos and early closing of the HPS acquisition, there would be no revenue from the former and one month integration of HPS (USD19m).We expect EBIT margin in IT Services to decline by 30bp because of the impact of the integration of HPS. We expect overall margins to expand by 50bp because of improved profitability in the Products business.Our PAT estimate is INR 22.2b, -0.8 percent Q-o-Q on account of forex losses.The stock trades at 15.1x FY17E and 13.0x FY18E earnings.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.