Cross-currency movements remain adverse, which may weigh on reported dollar revenue and margins, Emkay Global said. This brokerage expects profit for the IT major to fall 4.5 per cent YoY to Rs 3,077 crore from Rs 3,232.10 crore in the year-ago quarter while it sees Ebita margin to fall to 20.4 per cent from 21.8 per cent YoY.
Sales is seen rising 18.7 per cent YoY to Rs 21,659.50 crore. The brokerage expects 1.3 per cent QoQ dollar revenue growth in IT services after factoring 140 bps cross-currency headwinds. For the September quarter, Emkay Global expects Wipro to guide for 2.5-4.5 per cent QoQ growth in CC terms.
Kotak also sees Wipro guiding for 2.5-4.5 per cent revenue growth for September quarter in CC terms. This includes 1.2 per cent contribution from Rizing acquisition, it said, while suggesting organic growth guidance of 1.5-3.5 per cent.
The IT major had guided for 1-3 per cent QoQ revenue growth in CC terms, excluding Rizing contribution.
Kotak sees June quarter profit for Wipro falling 2.2 per cent YoY to Rs 3,006.20 crore on a 17.2 per cent rise in total revenues at Rs 21,771 crore. The brokerage sees Ebit margin at 23.8 per cent from 25 per cent in March and 25.5 per cent in the year-ago quarter.
Analysts said investors may focus on the success of the turnaround journey against the backdrop of modest growth and any signs of slowdown in business. They may also follow the management commentary on the levers to defend margins, especially amid a potential increase in cost structure and wage pressure.
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