Wipro shares trade down ahead of Q2 earnings; Q3 FY21 guidance, buyback details eyed
The Board of directors will be considering a proposal of buyback of equity shares of the company at the meeting scheduled to be held today. Kotak expects sequential constant currency revenue growth of 2 percent and cross-currency tailwind of 145 bps.
October 13, 2020 / 12:09 PM IST
Wipro share price was trading marginally in the red ahead of its September quarter results. The stock is trading at Rs 376.25, down Rs 1.30, or 0.34 percent. It has touched an intraday high of Rs 378.00 and an intraday low of Rs 373.
The scrip hit a record high of Rs 379.80 on October 12, 2020. The stock has gained over 20 percent since September 30, 2020, and was trading at Rs 374.70, down Rs 2.85, or 0.75 percent. It has touched an intraday high of Rs 378 and an intraday low of Rs 373.
The Board of directors will be considering a proposal of buyback of equity shares of the company at the meeting scheduled to be held on October 13, 2020. The company will announce the results for the second quarter ended September 30, 2020, in the aforesaid meeting.
Also Read: Wipro expected to announce Q2 earnings today; here are key things to watch for
Wipro is expected to report around 3.5 percent dollar revenue growth QoQ in the quarter ended September 30, 2020. Large deal wins and easing of supply-side constraints may boost topline. The constant currency revenue growth could be around 2 percent QoQ, while profit is expected to grow in the range of 4-9 percent backed by revenue and stable EBIT margin.
"We expect constant revenue growth of 2 percent QoQ and cross-currency tailwind of around 150 bps. In USD terms, we expect revenue to grow by 3.5 percent QoQ. Growth is expected to be driven by large deal wins, easing of supply-side constraints, and recovery in consumer, technology, communication, and healthcare verticals," said Sharekhan which sees 9 percent growth in consolidated profit.
Kotak Institutional Equities also expects sequential constant currency revenue growth of 2 percent and cross-currency tailwind of 145 bps. Wipro has announced many large deals in the past three months, some of which have ramped up in the quarter and will lead to robust performance, it feels.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.