With Infosys' Q3 earnings beating the Street's estimates, the focus now turns to Wipro results, which will be released on 18 January.
While it is widely expected that Wipro -- India's third largest IT firm -- will not be able to spring any surprise in its revenue growth for the December quarter, investors may look for impact of Chennai floods on its income.
India's third largest IT firm Wipro also gave a similar warning about its Q3 earnings following floods in Chennai. The company had said that increase in costs due to deployment of business continuity plans would impact revenues and operating margins for the quarter ended December 2015.
The Bengaluru-based IT giant is expected to post a 0.5% growth in dollar revenue for the October-December quarter on a sequential basis, according to an analysts' poll conducted by CNBC-TV18.
Wipro's dollar revenue stood at $1,831.9 million in the second quarter of the current fiscal year.
In constant currency terms, dollar revenue is likely to come at around 1-1.2% against guidance of 0.5-2.5% ($1841-1878 million), due to Chennai floods' impact witnessed in December last year.
Wipro has a headcount of about 22,000 people in its facilities in Chennai.
"Revenues from our IT Services business are expected to be in the previously communicated range of $1,841 million to $1,878 million; However, we expect revenues to be in the lower half of the guidance range," the company had said in the statement.
Analysts expect the acquisition of Designit to slightly contribute to Wipro's revenues in the third quarter. Wipro had acquired Designit, a Denmark-based global strategic design firm, in July last year to improve its income from the emerging digital vertical.
In rupee terms, Wipro's Q3 revenue is expected to increase by 2.7% to Rs 12,371 crore compared to Rs 12,042.8 crore in the September quarter.
However, a depreciation in rupee during the quarter is expected to partly offset the impact of Chennai floods on its margins.
