IIFL estimates that the Azim Premji-led company’s net revenues are likely to soar to Rs. 13,530 crore, growing at 11.4% yoy and 5.2% qoq.
Wipro Ltd, one of India’s largest information technology services providers, will announce its financial results on April 20 for the fourth quarter ended March 31, 2016.
IIFL estimates that the Azim Premji-led company’s net revenues are likely to soar to Rs. 13,530 crore, growing at 11.4% yoy and 5.2% qoq.
As per IIFL’s forecast, the company’s net profit for Q4 FY16 is expected to increase to Rs. 2,442 crore, at a rate of 7.5% yoy and 9.3% qoq.
Operating Profit Margin is likely to be at 22%, with a yoy fall of 69 bps.
IIFL is of the view that Wipro, while being impacted the most from oil price fall owing to much higher exposure to Energy vertical, is estimated to deliver strong growth of 2.8% qoq in cc terms. This would be driven by acceleration in execution on some large deals won over the past 12‐18 months.
IIFL has an overall positive investment view on the IT sector. With valuation reasonable for most players, patchy trend in growth seems to be adequately captured. In our view, well‐placed companies should be able to deliver 14‐15% cc dollar revenue growth over the next couple of years. The impact of pricing pressure on margin is likely to be mitigated by focus on employee productivity and expected gradual rupee depreciation.
Other key Q4 results on April 20 include Jay Bharat Maruti and VST Industries.
IIFL estimates that the Azim Premji-led company’s net revenues are likely to soar to Rs. 13,530 crore, growing at 11.4% yoy and 5.2% qoq.
As per IIFL’s forecast, the company’s net profit for Q4 FY16 is expected to increase to Rs. 2,442 crore, at a rate of 7.5% yoy and 9.3% qoq.
Operating Profit Margin is likely to be at 22%, with a yoy fall of 69 bps.
IIFL is of the view that Wipro, while being impacted the most from oil price fall owing to much higher exposure to Energy vertical, is estimated to deliver strong growth of 2.8% qoq in cc terms. This would be driven by acceleration in execution on some large deals won over the past 12‐18 months.
IIFL has an overall positive investment view on the IT sector. With valuation reasonable for most players, patchy trend in growth seems to be adequately captured. In our view, well‐placed companies should be able to deliver 14‐15% cc dollar revenue growth over the next couple of years. The impact of pricing pressure on margin is likely to be mitigated by focus on employee productivity and expected gradual rupee depreciation.
Other key Q4 results on April 20 include Jay Bharat Maruti and VST Industries.
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