Wipro Q3FY19E Result Expectation

Consensus expectations for Q3FY19E:

• Revenue – Rs15,220cr, up 4.7% qoq driven by incremental revenue contribution from the Alight deal and strength in the Financial Services vertical. Reported revenue growth for IT services is expected to be lower as PSU/Govt business will be carved out of the IT services segment.
• EBIT – Rs2,622cr, up 35.2% qoq
• EBIT Margin – 17.2%, up ~280bps qoq on reported basis. There were certain exceptional items in Q2FY19 adjusting for which the expansion would be ~50bps qoq. Margin expansion would be aided by operational efficiencies and favorable currency
• PAT – Rs2,336cr, up 23.7% qoq.

Q2FY19 performance highlights:

• Revenue –  Rs14,541cr, up 4.0% qoq, aided by sustained momentum in BFSI and growth in Energy, Natural Resources & Utilities and Communication vertical.
• EBIT – Rs1,913cr, down 4.4% qoq.
• EBIT Margin – 13.2%, down 130bps. This rise is on reported numbers and adjusting for the loss from settlement with a key client; the adj. EBIT margin stood at 16.7%.
• PAT – Rs1,889cr, down 10.9% qoq. Adjusting for the loss from the abovementioned settlement, the adjusted PAT would have been Rs2,287cr.

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