What will Wipro's Q1FY18 be like? Analysts ponder

Key Highlights: 

• Wipro expects IT service revenue between  $1,915 million to $19,555 million in Q1
• Wipro's net income declined by 4.7% yoy in FY17
• Wipro said will consider a proposal for buyback of equity shares in July 2017

Wipro Ltd is set to announce its first quarter ended June 30, 2017 (Q1FY18) results on July 20, 2017.

Analysts at Motilal Oswal said, "We expect organic growth to be at the mid-point of the guided range at -1%. A cross-currency tailwind of 110 basis points would lead to USD revenue growth of 0.1% QoQ."

Sandip Agarwal and Pranav Kshatriya, analysts at Edelweiss Financial Services Wipro to post USD revenue decline of 0.3% QoQ (cc decline of 1.2% QoQ), as Q1 is generally weak quarter for Wipro."

Deepak Purswani and Deepti Taya, analysts at ICICI Securities said, "Global IT services rupee revenue may decline 5.3% while consolidated revenues too could decline 4.9% to Rs 13,369 crore."

The duo at ICICI added, "Global IT services EBIT margins could decline 80 basis points QoQ to 16.8% led by muted revenue growth, one month wage hike and rupee headwinds."

Motilal Oswal added, "We expect overall EBIT margin to decline by 40 basis points, led by improved profitability in the Products business."

As per the duo at Edelweiss, key things that will be watched in Wipro's result are demand outlook in energy & utilities vertical, traction in BPM and restructuring in India and Middle East business. 

Overall, Wipro's net profit is seen at Rs 2,059.9 crore with muted growth of 0.4% yoy and revenue at Rs 13, 425 crore down 1.3% on yoy basis, as per Edelweiss.