INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Leading IT exporter Wipro is all poised for its fourth quarter results on Wednesday
All eyes are firmly on the management commentary on its energy segment that accounts for nearly 13 per cent of the software major's
Besides, an update on healthcare vertical will be keenly tracked.
Wipro had guided for 1-3 per cent qoq (quarter on quarter) constant
currency revenue growth for January-March
The guidance factored in meaningful revenue impact from insolvency of a customer under which it also took $50 million one-time provision on
costs in the previous quarter, Motilal Oswal noted.
HDFC Securities Institutional Research believes that the IT firm would lag peers in
The management guidance of reaching industry level growth rate seems difficult, it noted.
As far as Q4 numbers go, Edelweiss Securities
expects the brokerage to report growth of 2.1 per cent and 1.1 per cent, the lower-end of guidance, in dollar and constant currency terms,
This, it said, would be on account of client-specific issues in utilities and telecom verticals.
"Operating margins are expected to rise 20
We expect management to guide for 0-2 per cent growth in Q1 FY19, which is a seasonally weak quarter for the company
Management commentary on energy and utility and healthcare verticals and an update on India and Middle East markets are keenly awaited,"
Edelweiss said in a note.
Brokerage IDFC Securities expects a sequential revenue growth of 2.2 per cent and increase of 168 bps in EBIT
margin, which was impacted to the extent of 240 bps in the previous quarter due to client insolvency.
"We expect Wipro to guide 0-2 per cent
like-for-like revenue growth for Q1 FY19," it said.
Wipro has done some decent acquisitions like Appirio (cloud) and Design IT (design
services) to boost its digital offerings, but deal wins remain patchy, HDFC Securities Institutional Research said, adding that the EBIT
margin has bottomed out but recovery will be gradual.
Meanwhile, Nomura India believes that outlook on parity with industry growth on
sequential and yearly basis, continuation of strength in BFSI where outlook is positive and trends in retail, manufacturing, telecom and
healthcare and energy will be watched due to the prevailing cautious outlook.
