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IIFL analyst Sandeep Muthangi advises investors to add Infosys to their portfolios.
While chief executive office TK Kurien refained from giving any guidance, citing SEC rules, he says the company is more than making up for pricing pressure by hiking productivity.
IT major Wipro today announced a bleak set of Q1 numbers. In an interview to CNBC-TV18, sector analysts breakdown the results and what can be expected from the company in the days ahead.
Net sales are expected to increase by 0.4 percent Q-o-Q (up 9.5 percent Y-o-Y) to Rs 12194.6 crore, according to IndiaNivesh Securities.
The first quarter is a seasonally weak quarter for Wipro, though it is a strong quarter for the industry. Its peers TCS and Infosys reported dollar revenue growth of 3.5 percent and 4.5 percent, respectively.
Weak commodity prices, delayed capex recovery and soft rural demand are the key factors that will weigh on June quarter corporate earnings, says CRISIL Research.
Negative sentiment may have been already priced in as two other mid-cap companies Persistent and KPIT Technologies have also issued earnings warnings. Persistent had alerted investors that certain client specific issues could result in dollar revenue decline sequentially.
India‘s third largest software services exporter Wipro missed street expectations on IT services revenues front that declined 1.2 percent sequentially to USD 1.77 billion in the quarter ended March 2015.
Wipro‘s fourth-quarter earnings, in which revenues missed estimates slightly though profits were in line, were bogged down by a slowdown in the oil & gas vertical, CEO TK Kurien told CNBC-TV18‘s Kritika Saxena in an interview.
The company is hopeful of maintaining margins on operational improvements and productivity enhancements. The management, in a press conference, said the momentum is picking up in infrastructure and product engineering.
Wipro reported a 3.6 percent rise in its fourth quarter consolidated profit at Rs 2,272 crore. The company‘s revenue for the same period increased by 0.7 percent to Rs 12,171.4 crore compared to December quarter.
Sales are expected to increase by 1.3 percent Q-o-Q (up 4.2 percent Y-o-Y) to Rs 12143.1 crore, according to Motilal Oswal.
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.
Wipro will announce its fourth quarter earnings on Tuesday. India's third-largest IT services exporter is likely to report a 0.2 percent decline in dollar revenues, according to the average of estimates of analysts polled by CNBC-TV18.
In an interview with CNBC-TV18, Vibhor Singhal of Phillip Capital said he would need to see a few quarters of sustained revenue growth and high guidance to turn bullish on the stock.
Wipro‘s third quarter profit (from IT services and products business) jumped 5 percent sequentially to Rs 2,203.1 crore. The company‘s IT services revenue rose 3.9 percent to Rs 11,344 crore in October-December quarter and dollar revenues increased 1.3 percent to USD 1.795 billion on sequential basis, beating street expectations.
Dipesh Mehta, IT Analyst, SBICAP Securities says Wipro Q3 numbers give confidence of future growth prospects because it was reasonably broad based. All the verticals and geographies contributed towards growth, which is very comforting, he adds.
Sales are expected to increase by 2 percent Q-o-Q (up 5.7 percent Y-o-Y) to Rs 11918.4 crore, according to Motilal Oswal.
A CNBC-TV18 poll of analysts forecasts Wipro‘s dollar revenues to grow 0.76 percent to USD 1785 million while revenue in rupee terms may rise 1.35 percent to Rs 11,070 crore. Operating profits are seen at Rs 2,431 crore while EBIT margin is seen unchanged at 22 percent.
While JM Financial is incrementally positive on Infosys stock, it will still wait for one or two more quarters of performance from the company before upgrading it to a buy.
The management is optmistic that H2FY15 will be stronger. K Kurien, executive director & chief executive officer sees good momentum in large deals. He expects H2FY15 (October-March) to be better than H1FY15. According to him, the current demand environment is better than last year.
Software services firm Wipro's second quarter (July-September) net profit declined nearly 1 percent sequentially (up 8 percent year-on-year) to Rs 2,098.3 crore dented by higher tax and finance expenses, and reconciling items. Profit in the previous quarter was Rs 2,118 crore.
In an interview to CNBC-TV18, Ravi Menon, AVP - IT, Centrum Broking, Vibhor Singhal, IT Analyst, Phillip Capital and Sarabjit Kaur Nangra, VP - Research Pharma, Angel Broking spoke about Wipro‘s financial performance in the quarter gone by and the road ahead.
IT services revenue in rupee terms may jump 3.08 percent sequentially to Rs 10,832 crore in the quarter ended September 2014 from Rs 10,508.3 crore in June quarter.
Credit Suisse maintains outperform on the stock with a revised target of Rs 650 from Rs 600. It says that revenue growth will need to significantly accelerate for major relative outperformance.