Wipro is trading lower by 3% at Rs 365 ahead of its January-March quarter (Q4) earnings due on tomorrow, April 19.
The stock opened at Rs 373 and touched low of Rs 362 on NSE. A combined 2.03 million shares have changed hands on the counter till 1235 hours on NSE and BSE.
While announcing December 2012 quarter results, Wipro said its information technology (IT) business revenue will be between $1.585 billion and $1.625 billion, or a sequential gain of 0.5% to 3% for the quarter ended March 2013.
However, analyst at KR Choksey Shares and Securities says that Wipro’s IT services revenue growth expected to be 2% quarter-on-quarter (QoQ) in constant currency terms against the guidance of 0.5% to 3% QoQ growth; whereas adverse cross currency movements will adversely impact revenue growth in dollar terms by 40 bps QoQ.
Analyst expects the overall revenue growth to be muted led by weakness in IT Products and engineering segment.
“EBITDA (earnings before interest, taxes, depreciation and amortization) margin of Wipro’s IT services is expected to grow by 38 bps qoq to 23.9% on the back of improvement in utilization level,” says analyst at Angel Broking.
Meanwhile, the stock has underperformed the market by falling 10% in past one week compared to 2.2% rise in benchmark Nifty.
The stock opened at Rs 373 and touched low of Rs 362 on NSE. A combined 2.03 million shares have changed hands on the counter till 1235 hours on NSE and BSE.
While announcing December 2012 quarter results, Wipro said its information technology (IT) business revenue will be between $1.585 billion and $1.625 billion, or a sequential gain of 0.5% to 3% for the quarter ended March 2013.
However, analyst at KR Choksey Shares and Securities says that Wipro’s IT services revenue growth expected to be 2% quarter-on-quarter (QoQ) in constant currency terms against the guidance of 0.5% to 3% QoQ growth; whereas adverse cross currency movements will adversely impact revenue growth in dollar terms by 40 bps QoQ.
Analyst expects the overall revenue growth to be muted led by weakness in IT Products and engineering segment.
“EBITDA (earnings before interest, taxes, depreciation and amortization) margin of Wipro’s IT services is expected to grow by 38 bps qoq to 23.9% on the back of improvement in utilization level,” says analyst at Angel Broking.
Meanwhile, the stock has underperformed the market by falling 10% in past one week compared to 2.2% rise in benchmark Nifty.