August18 , 2022

Wipro Q1 Results preview: Wipro Q1 preview: Profit may decline 2-5% YoY; Q2 CC revenue guidance likely at 2.5-4.5%

Related

Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News

Search Quotes, News, Mutual Fund NAVs Tata Steel INE081A01020, TATASTEEL,...

Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News

Search Quotes, News, Mutual Fund NAVs Tata Steel INE081A01020, TATASTEEL,...

Why Apple and Amazon results are important

Apple and Amazon added about $175 billion to...

Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News

Search Quotes, News, Mutual Fund NAVs Tata Steel INE081A01020, TATASTEEL,...

Share

[ad_1]

is likely to report a single digit drop in year-on-year (YoY) profit on a double digit rise in sales. Ebit margin is moderating for the quarter. Analysts see analysts guiding for 2.5-4.5 per cent sequential rise in constant currency revenue growth for September quarter.

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.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

[ad_2]

Source link