Wipro nears 52-week high ahead of Q4 results, shares buyback

Wipro has moved higher by 3% to Rs 607 on the BSE ahead of January-March (Q4) quarter results later today. The board will also consider a proposal for buyback of equity shares of the company.

The stock is currently trading close to its 52-week high of Rs 613 touched on October 1, 2015 during intra-day trade.

In past one-month, the stock has outperforming the market by gaining 11% as compared to 3.5% increase in the benchmark S&P BSE Sensex.

Kotak Institutional Equities expect Wipro will post US$ revenue growth of 2.5% (organic growth of 1%) and cross-currency impact of 50 basis points (bps).

“We expect information technology (IT) services EBIT margin to recover 60 bps largely from non-recurrence of costs pertaining to Chennai floods that hurt margins in the previous quarter, rupee depreciation and some recovery in profitability of IT products business,” the brokerage house said in results preview.

Edelweiss Securities said Wipro to post US$ revenue growth of 2.3% on quarter on quarter (QoQ) and cross currency impact of 40 bps. EBITDA margin estimated increase by 70bps due to absence of Chennai flood cost, efficiency and rupee depreciation.

Wipro’s global IT services $ revenues could grow 3.1% QoQ to $1,896 million, in line with its earlier guided range of $1875-$1912 million. Global IT services rupee revenue could grow 3.9% while consolidated revenues could grow 4.9% to Rs 13,584 crore. Global IT services EBIT margins could increase 60 bps QoQ to 20.8% led by rupee depreciation and absence of onetime costs associated with Chennai floods & lower billing days, according to ICICI Securities.

At 02:49 pm, the stock was up 2% at Rs 600 on the BSE as compared 0.09% gain in S&P BSE Sensex. A combined 4.32 million shares changed hands against an average sub two million shares that were traded daily in past two weeks on the BSE and NSE.

Wipro Technologies (Wipro Ltd)