High volume growth, effective hedging policies and tight management of operations during the third quarter would help Wipro Technologies outdo its revenue estimates for Q3 of fiscal 2010, according to Street watchers. Wipro was likely to beat its peers in revenue growth in dollar terms and be least impacted by the margin pressures from negative market factors like currency fluctuation and wage inflation, according to top brokerage firms.

The company is schedule to announce its third quarter results on January 20.

Wipro?s dollar revenues for IT services in the quarter were likely to be at $ 1,118 million, compared to its projected $1billion- $1.1 billion, according to Motilal Oswal Securities Ltd (MOSL) . ?We expect Wipro to post the best results within the top tier universe in Q3 FY10 with dollar revenues growth of 5%, ahead of its guided range of 2.5- 4.5%,? MOSL said in its ?India strategy report,? while previewing third quarter performances of Indian IT players. Wipro would be aided to manage margin pressures by high volume growth and relatively lower contribution from low- margin products. Favorable cross currency movements could boost the company?s revenues by nearly 3% in the quarter.

While MOSL projects an improvement in Wipro?s EBIT margins from margins from 18.8% to 19.4% through tight operations, Angel Securities said that Wipro would suffer a 38bp decline in EBIT margins owing to factors like salary hike, increased hiring and sales and general administrative expenses, which weighed down the industry during Q3 of fiscal 2010. Net profits could decline by 2.3% on a quarterly basis.

Wipro?s rival Infosys had managed to compensate the negative impacts of wage inflation and rupee appreciation through high business volumes.

Sharekhan?s IT earnings preview report for the quarter predicts revenue growth of 4.6% sequentially for Wipro?s IT services, at $1,115 million. Rupee term revenues for Wipro would improve by 1.7% sequentially, though revenues in rupees for the rest of the industry were expected to be flat or marginally negative owing to rupee appreciation (of average 3.6%) in the quarter.

Sharekhan credits Wipro?s hedging policies for helping it manage the unfavorable rupee- dollar equation in Q3 fisal 2010.