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Net Sales are expected to decrease by 2 percent Q-o-Q (up 6.9 percent Y-o-Y) to Rs 13428.4 crore, according to Kotak Securities.
Net Sales are expected to decrease by 0.2 percent Q-o-Q (up 8.5 percent Y-o-Y) to Rs 13575.9 crore, according to Motilal Oswal.
Speaking to CNBC-TV18, Ravi Menon of Elara Capital outlined his investment picks from the sector.
In an interview with CNBC-TV18, NASSCOM President R Chandrashekhar and Sudin Apte of Offshore Insighs talked about the challenges faced the IT industry.
CEO Abidali Z Neemuchwala said he is hopeful of seeing more demand for the digital business. Senior Vice President and Chief Financial Officer and President & Chief Human Resources Officer also weighed in.
Ravi Menon of Elara Capital, in an interview to CNBC-TV18, said there is some uptick in capex in the energy space which might provide some fillip to Wipro's IT business in the coming years. However, for now this vertical will prove to be a drag.
Revenues are expected to increase by 1.3 percent Q-o-Q (up 12.9 percent Y-o-Y) to Rs 13812.9 crore, according to Edelweiss Securities.
Analysts say growth may be boosted by full quarter integration of Healthplan acquisition and currency tailwinds. According to them, Healthplan can contribute around 200 basis points to topline.
Sales are expected to increase by 3.1 percent Q-o-Q (up 14.9 percent Y-o-Y) to Rs 14059 crore, according to Motilal Oswal
Morgan Stanley has downgraded the stock to underweight from equal-weight with a trimmed target of Rs 516 per share. It believes that Q1F17 guidance does not suggest any meaningful acceleration in core organic business and EBIT margin may face pressure.
Moshe Katri, MD of CRT Sterne Agee, believes Infosys has so far done an incredible job in reclaiming the lost market share and it must articulate on ways of transition of its legacy business into digital.
While energy and utility sectors continue to be a headwind for Wipro, clear demand is visible in digital space, Abidali Neemuchwala, CEO of Wipro said.
All three IT companies posted robust numbers, some were ahead of others when it comes to revenue, EBIT and profit growth.
Sarabjit Kour Nangra of Angel Broking said that she was disappointed with the guidance number as Wipro has made a few acquisitions and sees a sharp down trend in its stock on Thursday.
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.
In the largecap tech stocks, Urmil Shah, Research Analyst, Institutional Equities, IDBI Capital, prefers Infosys and HCL Tech and believes the former can reach valuations of 20 times by next year. Shah has a target price of Rs 1,381 on Infosys and believes it has higher upside compared to TCS.
Analysts feel the acquisition of Cellent (in December 2015) may contribute to topline and hence Q4 growth may be highest amongst peers.
Headwinds from depreciation of the British pound (GBP) and other cross-currency movements may also negatively impact USD revenues by 30-50 basis points for the said quarter.
Shashi Bhusan, IT Analyst, IDFC Securities, expects the company to issue a revenue guidance of 11-13 percent for FY17.
TK Kurien, Chief Executive Officer at Wipro pointed out that the company posted the best quarter in terms of new deals by bagging 6 new deals largely led by global infrastructure services. The new deal wins In Q3 reflect in the guidance for Q4, he added.
According to Harendra Kumar of Elara Capital, the stock is aptly priced currently and there is no reason for either re-rating or de-rating the stock.
Dollar revenue growth in constant currency may be at around 1-1.2 percent against guidance of 0.5-2.5 percent (USD 1841-1878 million), impacted by Chennai floods.
Nomura feels overall USD revenue growth is likely decelerate to 8.5 percent Y-o-Y posting ninth straight quarter of deceleration from a peak of 15.4 percent Y-oY. Cross currency moves will again likely hit USD revenues by 30-60 bps across tier 1 IT companies.
Indian software major Wipro on Wednesday announced a 4 percent sequential growth in its rupee revenue, matching analysts' expectations.
Analysts expect cross currency headwinds at around 70-80 basis points. Hence, constant currency growth in dollar revenue may be around 2.7-2.8 percent (including some contribution from Designit acquired during the quarter), which is within the company guided range of 1.5-3.5 percent (USD 1821-1,857 million) for Q2FY16.