Wipro advances ahead of Q3 results, may meet Q3 guidance
Wipro shares have risen 9 per cent in the last one-year.
By ETMarkets.com | Updated:
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NEW DELHI: Shares of Wipro advanced in Tuesday’s trade ahead of its December quarter results scheduled for later in the day.
Jefferies' analysts Arya Sen and Ankur Pant expect the IT major to report 1.8 per cent QoQ (quarter-on-quarter) growth in revenue in constant currency terms. This would be at the mid-point of the company’s Q3 guidance, which means YoY (year-on-year) growth of only 2.6 per cent, well below its peers.
It has risen 9 per cent in last one-year compared with 16.81 per cent rise in the BSE Sensex.
Dolat Capital also expects constant currency revenue growth of 1.8 per cent QoQ at the midpoint of its revenue guided band.
“Growth is expected to be driven by full quarter gains from ICICI deal and integration of ITI,” Dolat Capital analysts said in a note on January 6.
They pointed out that EBIT (earnings before interest and tax) margins for IT services are likely to improve by 30 bps QoQ on forex tailwinds, while overall EBIT is likely to remain largely unchanged. Wipro’s profit after tax (PAT) is likely to be lower on weak treasury gains post buyback payout and higher ETR (effective tax rate).
Motilal Oswal Financial Services expects Wipro to report a profit after tax (PAT) at Rs 2,372.8 crore, down 4.8 per cent YoY and 4.4 per cent QoQ.
The company's shares closed 0.75 per cent higher at Rs 256.80 on BSE.
Jefferies' analysts Arya Sen and Ankur Pant expect the IT major to report 1.8 per cent QoQ (quarter-on-quarter) growth in revenue in constant currency terms. This would be at the mid-point of the company’s Q3 guidance, which means YoY (year-on-year) growth of only 2.6 per cent, well below its peers.
It has risen 9 per cent in last one-year compared with 16.81 per cent rise in the BSE Sensex.
Dolat Capital also expects constant currency revenue growth of 1.8 per cent QoQ at the midpoint of its revenue guided band.
“Growth is expected to be driven by full quarter gains from ICICI deal and integration of ITI,” Dolat Capital analysts said in a note on January 6.
They pointed out that EBIT (earnings before interest and tax) margins for IT services are likely to improve by 30 bps QoQ on forex tailwinds, while overall EBIT is likely to remain largely unchanged. Wipro’s profit after tax (PAT) is likely to be lower on weak treasury gains post buyback payout and higher ETR (effective tax rate).
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Motilal Oswal Financial Services expects Wipro to report a profit after tax (PAT) at Rs 2,372.8 crore, down 4.8 per cent YoY and 4.4 per cent QoQ.
The company's shares closed 0.75 per cent higher at Rs 256.80 on BSE.
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