Wipro shares traded higher on Wednesday, ahead of the IT major’s fourth quarter earnings announcement later in the day.
India’s third-largest software services exporter is expected to post a sequential dollar revenue growth of 2.6 per cent to $1,886 million.
Constant currency revenue is likely to rise by 3 per cent over the previous quarter, in line with Wipro’s forecast of 2-4 per cent growth. If Wipro meets Street estimates, it will trump both TCS and Infosys, which have posted 2.1 per cent and 1.9 per cent constant currency revenue growth in Q4.
However, Wipro’s operating margin (IT services) is expected to decline by 30 basis points, despite depreciation in the rupee during the quarter.
In rupee terms, Wipro is expected to post a net profit of Rs 2,349 crore on sales of Rs 13,507 crore.
Wipro has been lagging the Indian IT sector’s growth rate in the last couple of years as its financial and energy clients, who account for the bulk of its revenue, cut back on outsourcing spending.
But Bengaluru-based Wipro is expecting to come back strongly under Abidali Neemuchwala, who was appointed as CEO effective February 1.
As on 1.13 p.m., shares of Wipro were up 1.37 per cent at Rs 595 outperforming the broad market indicator Sensex, which was trading flat.