Wipro’s intentions may be good, but investors will keenly await successful execution
While the numbers are expected to show the pressure of coronavirus pandemic, investors will focus on the commentary on margin and the road ahead of the company.
Net Sales are expected to decrease by 4.5 percent Q-o-Q (up 2 percent Y-o-Y) to Rs. 15,098.8 crore, according to Motilal Oswal.
Brokerages say the demand pullback is expected to be severe in the directly impacted segments but BFSI and telecom could be stable in terms of growth for IT companies.
Profitability is likely to hit by subdued revenue growth, treasury gains and higher forex losses.
The company has guided for 0 to 2 percent QoQ in CC terms building softness in renewals.
We do not expect significant upside unless Wipro matches its peers in growth sweepstakes
The IT services dollar revenue growth could be around 2.2% for the quarter (QoQ), driven by incremental revenue from ITI acquisition and ICICI deal ramp-up.
Net Sales are expected to increase by 3.8 percent Q-o-Q (up 4.2 percent Y-o-Y) to Rs. 15,693.3 crore, according to Motilal Oswal.
Japanese brokerage firm Nomura has maintained its reduce call on the stock with a target price at Rs 235 per share as it expects growth to continue to lag peers.
Brokerage houses expect the sequential decline in bottomline in the range of 2-8 percent over previous quarter.
Net Sales are expected to increase by 0.2 percent Q-o-Q (up 1.4 percent Y-o-Y) to Rs. 14,740.9 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 2.1 percent Q-o-Q (up 3.3 percent Y-o-Y) to Rs. 15,025.6 crore, according to Motilal Oswal.
Global brokerages remained bearish on the stock and said the company may not be able to achieve FY20 revenue target given weak start to earnings
The Street generally tracks company's IT services revenue instead of consolidated earnings which also include hardware business.
Net Sales are expected to decrease by 2.4 percent Q-o-Q (up 4.7 percent Y-o-Y) to Rs. 14,639.3 crore, according to Prabhudas Lilladher.
Net Sales are expected to decrease by 2.1 percent Q-o-Q (up 5.9 percent Y-o-Y) to Rs. 14,877.8 crore, according to Kotak.
Net Sales are expected to increase by 0.1 percent Q-o-Q (up 9.5 percent Y-o-Y) to Rs. 15,072 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 0.7 percent Q-o-Q (up 11.6 percent Y-o-Y) to Rs. 15,262.2 crore, according to Kotak.
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
But non-auto consumer discretionary companies like Titan and Zee Entertainment are expected to report relatively stronger growth, Deutsche said.
CLSA said strong growth in US is positive for most firms, but more for Infosys & Cognizant while strong growth in CMT is positive for Tech Mahindra, Wipro & HCL Technologies
Kotak advised adding HCL Technologies, L&T Infotech, Mindtree and Tech Mahindra which could return 8-12 percent
Jefferies has raised Wipro's EPS estimates over FY19-21 by 5-7% to reflect better margins
Jefferies expects 2.5 percent constant currency revenue growth (1.9 percent USD) that includes 1.2 percent contribution from Alight acquisition