Wipro shares gain 4% ahead of March quarter earnings next week

Shares of IT company Wipro rallied 4 percent intraday on April 8 ahead of its Q4 FY20 earnings. The company will announce its March quarter earnings next week.

Wipro on Tuesday said the meeting of the board of directors would be held on April 15 to consider and approve the condensed audited standalone and consolidated financial results under IndAS for the quarter and year ended March 31, 2020.

The board will also consider the condensed audited consolidated financial results under IFRS for same periods, it added. "The financial results would be finally approved by the board of directors on the evening of the same day."

The company said the board would also mull recommendation of final dividend, if any, for FY20.

Hence the trading window for dealing in the securities of the company has been closed from March 16, 2020, till the close of trading hours of April 17, 2020, it added.

The leading global IT company said after the results announcement, the senior management would discuss its performance for the quarter and answer questions via conference call on the same day at 19:15 hours.

Brokerages largely expect the IT companies to be impacted by COVID-19.

"Second half of Q4FY20 witnessed varying levels of COVID-19 disruption across most of the core markets of IT companies like the US, Europe and even India, but most of our coverage companies did a reasonable job in controlling the damage by resorting to options like ‘work from home’," said Motilal Oswal.

According to the brokerage, Wipro may report a 4.3 percent decline in Q4 profit and 0.6 percent degrowth in revenue QoQ. IT services dollar revenue degrowth could be 1 percent and EBIT margin may contract 22bp QoQ.