Wipro Q4 net seen down 4.9% at Rs 2085.4 cr: ICICIdirect

ICICIdirect has come out with its fourth quarter (January-March) earnings estimates for the technology sector. The brokerage house expects Wipro to report a 4.9 percent degrowth quarter-on-quarter (degrowth of 6.3 percent year-on-year) in net profit at Rs 2085.4 crore.

Revenues are expected to decrease by 1.5 percent Q-o-Q (up 1.7 percent Y-o-Y) to Rs 11897.9 crore, according to ICICIdirect.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 4.6 percent Q-o-Q (down 7.9 percent Y-o-Y) to Rs 2641.2 crore.

ICICIdirect's Report on Wipro:

IT services dollar revenues could decline 0.3 percent QoQ to USD 1,791 million while constant currency revenues may grow 2 percent QoQ (1-3 percent guidance) led by new deal ramp-ups. Dependence on energy vertical (16 percent of revenues) could continue to weigh on recovery (average 3.2 percent growth in trailing four-quarters vs 2.3 percent company average). Consolidated rupee revenues could decline 1.5 percent QoQ to Rs 11,898 crore. IT services EBIT margins may decline 40 bps QoQ to 21.4 percent led by currency headwinds partially offset by operating efficiency.

Investor interest: Q1FY16E guidance, client commentary related to energy vertical, CY15E T budget outlook and spend trends, margin and deal pipeline outlook.

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