With TCS and Infosys results out of the way, it is the turn of another IT major Wipro to announce the second quarter results which it will do so Tuesday with the analysts sounding a note of caution stating that the Bengaluru headquartered company might come out with weak revenue growth.

Analysts tracking the company said they expect Wipro to guide for 0 - 2 per cent revenue growth for December 2019 quarter and expect growth to be impacted by cautious spending of Europe banking and capital market clients.

"We expect constant currency revenue growth of 1.2 per cent and cross-currency headwind of 70 bps on a QoQ basis. We expect weak growth from the financial services vertical and steady growth in others, a note from Kotak Institutional Equities said.

It said the full quarter impact of wage revision is likely to lead to a decline in EBIT margin. Reported EBIT margin is expected to increase by 324 bps on YoY comparison mainly on account of 360 bps impact from the settlement of a lawsuit with National Grid in Sep 2018 quarter.

Completion of buyback in September will impact treasury income. "We note that the company has extinguished 5.5 per cent of the equity as part of the buyback program. We expect Wipro to guide for 0-2 revenue growth for December 2019 quarter and expect growth to be impacted by cautious spending of Europe banking and capital market clients, Kotak said in a note to its investors.

It said it expects investor focus on (1) outlook for the key growth driver of FY2019 viz financial services vertical, (2) sustainability of margin in light of muted growth, and (3) benefit from the cut in corporate tax rate by Indian Government.

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