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    Wipro likely to hit upper end of guidance in Q4 too

    Synopsis

    Wipro’s Q3 performance has been good from both revenue and margin perspective. We have to revise our numbers upwards, says Harit Shah.

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    Given that they have been hit the upper end of the guidance this quarter, there is a good chance that they will hit somewhere close to the upper end in the fourth quarter as well, says Harit Shah, Senior Research Analyst, KR Choksey.

    How are you looking at Wipro earnings?
    Wipro’s revenue came in at about 3.4% in constant currency terms which is somewhere close to the upper end of their guidance. We were expecting somewhere closer to 3% and they have definitely come out with a good set of numbers as far as the revenue aspect is concerned. The IT services profitability also has improved this quarter by about 40 bps and that was also above expectation.

    There is nothing to complain about the headline numbers. As for guidance, that was slightly more optimistic. They had guided for 1.5-3.5%, which is similar to what they had guided for in the third quarter as well. But maybe nothing much to complain about. Given that they have been able to hit the upper end of the guidance this quarter, there is a good chance that they will hit somewhere close to the upper end even in the fourth quarter as well.

    Are you expecting a spectacular move on the Wipro stock price tomorrow?
    The performance has been good on both revenue and margin fronts in this particular quarter. We have to revise our numbers upwards. We had upgraded the stock in the last quarter and it has surpassed our target price.

    We are working on the numbers but we will maintain our calls on the stock and definitely we will remain positive on Wipro.
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