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Tech Mahindra has posted a strong quarter. In an interview with CNBC-TV18, Ravi Menon of Elara shared his views and readings on the same as well as on some of its peer companies.
Wipro will have cross-currency headwind of about 100 bps on a QoQ basis due to the depreciation of AUD and CAD versus base quarter exchange rates used for guidance.
CLSA has reduced its growth expectations for Wipro, TCS & HCL Technologies, and lifted expectations for Infosys.
The company’s consolidated net profit increased 5.5 percent sequentially to Rs 2,191.7 crore for quarter ended September 2017.
Analysts expect earnings before interest and tax (EBIT) at 16.6 percent for the quarter against 16.8 percent in previous quarter as operating efficiencies and cross currency tailwinds, partly offset by impact of wage revision effective June.
Net Sales are expected to increase by 1.5 percent Q-o-Q (down 0.2 percent Y-o-Y) to Rs. 13860.2 crore, according to Kotak.
For Infosys, BofA-ML expects sequential revenue growth of 3.2 percent on a QoQ basis on a constant currency basis and 4.4 percent QoQ in USD terms, aided by strengthening EUR, AUD and GBP during the quarter.
Wipro Q1 FY18 earnings beat expectations but guidance disappointed the street- the board has also approved a Rs 11,000 crore buyback. In an interview to CNBC-TV18, Sandip Agarwal of Edelweiss Financial Services shared his readings and outlook on the same.
Analysts expect the company to guide its dollar revenue growth in the range of 0-2 percent or 1-3 percent for July-September quarter.
Net Sales are expected to decrease by 4 percent Q-o-Q (down 1.3 percent Y-o-Y) to Rs 13425.5 crore, according to Edelweiss. Wipro to report net profit at 2059.9 crore down 8.9% quarter-on-quarter.
In an interview with CNBC-TV18, Urmil Shah, AVP-Research Analyst at IDBI Capital and Karan Taurani, Senior Analyst at Dolat Capital shared their readings and outlook in HCL Technologies'Q4 numbers.
Brokerage houses sound caution on the stock due to margin pressure, weak guidance, and rupee strength, among others
Wipro's Q4 numbers beat estimates across the board, but Q1 guidance has disappointed. In an interview to CNBC-TV18, Sandip Agarwal of Edelweiss Financial Services shared his readings and outlook for Wipro’s Q4 results and Q1 guidance.
Notwithstanding few headwinds to revenue and margin in the immediate quarters, Wipro does not see any structural growth issues in the medium term.
Wipro may forecast dollar revenue growth at 0-2 percent for first quarter of current financial year 2017-18.
Net Sales are expected to be flat at Rs 13623.4 crore, according to KR Choksey. Wipro to report net profit at 2031.5 crore down 4% quarter-on-quarter.
The North American market accounts for over 62 percent of Infosys' revenue. For the quarter ended March 2017, revenue from this market grew 1.3 per cent sequentially for the company.
The company has been looking at acquisitions where it needs future competency, says Bhanumurthy, President and COO of the company. It is looking at acquisitions which will help in expanding geographies.
Wipro's IT services revenue in dollar terms may grow 0.14 percent sequentially to USD 1,919 million and rupee revenue is seen rising 0.6 percent to Rs 13,215 crore in the quarter gone by, according to average of estimates of analysts polled by CNBC-TV18.
Net Sales are expected to be flat at Rs 13766.8 crore for Q-oQ (up 7 percent Y-o-Y), according to KR Choksey.
Net Sales are expected to increase by 0.9 percent Q-o-Q (up 8.1 percent Y-o-Y) to Rs 13896 crore, according to Motilal Oswal.
No significant upside is seen in Wipro‘s earnings, said Apurva Prasad, Research analyst – IT at HDFC Securities who has scaled down earnings estimate by 2-3 percent for the company.
Fewer working days and client furlough are key reasons for Wipro‘s subdued growth guidance for the third quarter, says CFO Jatin Dalal in an interview to CNBC-TV18 after its third quarter guidance disappointed the street earlier in the day.
Going forward, in one or two quarters Wipro will catch with its peers Infosys and TCS, said Prakash Diwan of Altamount Capital Management.
In constant currency terms, growth is seen at 0.5-0.7 percent, which is within company's guided band of 0-1 percent at USD 1931 million-USD 1950 million. Cross currency headwind may to be 100-120 basis points.