Wipro likely to meet sales target, maintain guidance
The Bangalore-based company may see its third quarter profit rise to Rs 1,968 crore, the average of nine analysts' estimates, compiled by ET.
By Indu Nandakumar, ET Bureau |
BANGALORE: Wipro, India's third-largest IT services provider, will meet its sales growth forecast in the third-quarter and maintain growth guidance for the current quarter that ends on March 31, analysts say.
The Bangalore-based company may see its third quarter profit rise to Rs 1,968 crore, the average of nine analysts' estimates, compiled by ET.
Investors will look for traction in verticals such as financial services, where Wipro lags larger rivals of Infosys and TCS, telecommunications and manufacturing, its traditional area of strength.
The strongest revenue growth in seven quarters for the three months ended on September 30 raised hopes that CEO TK Kurien is finally getting the company to accelerate growth after two years of lagging the industry.
Most analysts expect Wipro's current quarter sales to increase 2-4%, .
"Broad-basing of growth beyond the top-10 and to the top-125 key accounts will be important to watch," ICICI Securities analysts Kuldeep Koul and Varun Sharma wrote in a note ahead of the results.
As a part of the turnaround plan, Wipro has identified 125 customers that it believes are the most important to its future. Deepening relations with these customers and growing them into larger accounts will be vital, Kurien said in October.
The company also recently restructured its senior management team, which included making Shaji Farooq, who had joined from Infosys, the head of the financial services vertical. During the quarter, Wipro also said it had agreed to buy US mortgage services provider Opus Capital Market Consultants for $75 million ( Rs 465 crore).
For the December quarter, analysts see a 2.8% to 3.3% revenue growth in dollar terms over the previous three months - between $1,680 million and $1,700 million - compared with Wipro's guidance of $1,660 million to $1,690 million.
"Wipro's revenue growth will likely be close to the top-end of its peer group after several quarters of lagging behind," brokerage Kotak Institutional Equities said in a report.
The Bangalore-based company may see its third quarter profit rise to Rs 1,968 crore, the average of nine analysts' estimates, compiled by ET.
Investors will look for traction in verticals such as financial services, where Wipro lags larger rivals of Infosys and TCS, telecommunications and manufacturing, its traditional area of strength.
The strongest revenue growth in seven quarters for the three months ended on September 30 raised hopes that CEO TK Kurien is finally getting the company to accelerate growth after two years of lagging the industry.
Most analysts expect Wipro's current quarter sales to increase 2-4%, .
"Broad-basing of growth beyond the top-10 and to the top-125 key accounts will be important to watch," ICICI Securities analysts Kuldeep Koul and Varun Sharma wrote in a note ahead of the results.
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As a part of the turnaround plan, Wipro has identified 125 customers that it believes are the most important to its future. Deepening relations with these customers and growing them into larger accounts will be vital, Kurien said in October.
The company also recently restructured its senior management team, which included making Shaji Farooq, who had joined from Infosys, the head of the financial services vertical. During the quarter, Wipro also said it had agreed to buy US mortgage services provider Opus Capital Market Consultants for $75 million ( Rs 465 crore).
For the December quarter, analysts see a 2.8% to 3.3% revenue growth in dollar terms over the previous three months - between $1,680 million and $1,700 million - compared with Wipro's guidance of $1,660 million to $1,690 million.
"Wipro's revenue growth will likely be close to the top-end of its peer group after several quarters of lagging behind," brokerage Kotak Institutional Equities said in a report.
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