Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    

| More

Views on Wipro Limited 3QFY2018: Angel Broking

Posted On: 2018-01-28 10:01:06

Views of Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking):

"Wipro posted numbers in line with expectations on the EBIT front, while sales and net profit came below expectations. Company's IT services posted a flat QoQ growth in USD revenues to US$2,014mn V/s US$2,035mn expectations V/s US$2,013mn in 2QFY2018. On Constant Currency (CC) terms, the company posted a 0.9% QoQ growth. In rupee terms consolidated revenues came in at INR 13,669cr V/s INR 13,450cr expectations V/s INR 13,423cr in 2QFY2018, up 1.8% QoQ. The growth in terms of geography the growth was mainly driven by Europe (4.7% QoQ CC growth), India & Middle East (1.4% QoQ CC growth) business. In terms of verticals, the growth was driven by the BFSI (4.4% QoQ CC growth) and Healthcare (2.5% QoQ CC growth) segments. The key vertical of the company Energy, Natural Resources and Utilities (6.1% QoQ Cc de-growth). Manufacturing and Technology, posted a flat CC QoQ growth during the period. Digital revenue surpassed 25% of its IT Services business.

On EBIT front, the company posted an EBIT of 16.8% V/s 16.8% in 2QFY2018; in line with expectations. Consequently, the Adj. PAT came in at INR 2,255cr V/s INR 2,147cr expected V/s INR 2,191cr in 2QFY2018, growth of 2.9% QoQ. During the quarter, company reported an impact of INR 317.5cr, made with respect to insolvency of a customer post the balance sheet date. Thus reported PAT came in INR 1,937cr, registering a QoQ dip of 11.6%.

On, the operational front the company had utilization levels of 71.0% V/s 72.9% in 2QFY2018. The attrition rate during the quarter was 15.9% V/s 15.7% in 2QFY2018. In terms of client addition, the company added 79 clients. It added one client in the US$75mn+, 2 in the US$50mn. For 4QFY2018, the company has given guidance of US$2,033-US$2,073mn, a CC QoQ growth of 1-3%.

Overall, the current quarter numbers were below expectations. Going forward into the next quarter, the company is given a guidance, which is higher and is in line with its earlier commentary that they expect a gradual improvement form 4QFY2018. The client additions have been healthy, with good additions in the high sales ticket sizes also. While Wipro has been improving its operating performance, its top line growth has been muted. Thus as we move into FY2019, for Wipro it's imperative it grows its sales, along with improving its operating leverage. As of now, on back of the valuations, we maintain our REDUCE rating on the stock, with a price target of INR 289."

Shares of WIPRO LTD. was last trading in BSE at Rs.311.95 as compared to the previous close of Rs. 313.75. The total number of shares traded during the day was 325966 in over 2124 trades.

The stock hit an intraday high of Rs. 317.3 and intraday low of 309. The net turnover during the day was Rs. 101742595.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Company Update: Venky's India Ltd - ACCUMULATE - TP Rs.4600 - Kotak
Company Update: NBCC (India) Ltd - BUY - TP Rs.229 - Kotak
Company Update: Petronet LNG Ltd - BUY - TP Rs.276 - Kotak
India Inc. has INR 1.8 lakh crore of cash trapped in their balance sheets: EY Report
Company Update: KNR Constructions Ltd - BUY - TP Rs.348 - Kotak
Akzo Nobel India Ltd - Initiating Coverage - Kotak Securities
Greenply Industries - Initiating Coverage - Angel Broking
Growth of India's apparel exports contingent upon overcoming internal and external headwinds: ICRA
Management Meet Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak
Ajanta Pharma - Initiating Coverage - Arihant Capital Markets
Result Update: Indo Count Industries Ltd - BUY - TP Rs.135 - Kotak
Arihant Capital Markets - Ambuja Cement 4QCY17 Result Update - HOLD
Result Update: Bodal Chemicals Ltd - ACCUMULATE - TP Rs.164 - Kotak
Result Update: Mahindra & Mahindra - BUY - TP Rs.864 - Kotak
Result Update: The India Cements Ltd - BUY - TP Rs.195 - Kotak
Result Update: Sun TV Network Ltd - REDUCE - TP Rs.994 - Kotak
Result Update: Voltas Ltd - ACCUMULATE - TP Rs.648 - Kotak
Result Update: Oil India Ltd - ACCUMULATE - TP Rs.392 - Kotak
Result Update: Petronet LNG Ltd - BUY - TP Rs.285 - Kotak
Result Update: Carborundum Universal Ltd - BUY - TP Rs.418 - Kotak
Proposed opening of coal sector to private players: Angel Broking
Result Update: Vascon Engineers Ltd (VEL) - BUY - TP Rs.57 - Kotak
Initiating Coverage: HSIL Ltd - Angel Broking
Result Update: The Phoenix Mills Ltd - BUY - TP Rs.672 - Kotak
Result Update: Time Technoplast Ltd - BUY - TP Rs.214 - Kotak
Result Update: Shipping Corporation of India - BUY - TP Rs.110 - Kotak
Result Update: PNC Infratech Ltd - BUY - TP Rs.208 - Kotak
Result Update: KNR Constructions Ltd - ACCUMULATE - TP Rs.348 - Kotak
Result Update: NBCC (India) Ltd - ACCUMULATE - TP Rs.229 - Kotak
Result Update: Jindal Stainless Hisar Ltd - BUY - TP Rs.318 - Kotak
Result Update: NMDC Ltd - SELL - TP Rs.130 - Kotak
Result Update: Talbros Automotive Ltd - BUY - TP Rs.389 - Kotak
Result Update: Sterling Tools Ltd - ACCUMULATE - TP Rs.428 - Kotak
Result Update: FIEM Industries Ltd - BUY - TP Rs.1203 - Kotak
Management Meet Update: Escorts Ltd - BUY - TP Rs.1051 - Kotak
Result Update: GE Shipping Company - BUY - TP Rs.500 - Kotak
Result Update: Marico Ltd - ACCUMULATE - TP Rs.327 - Kotak
Result Update: Mahanagar Gas Ltd - ACCUMULATE - TP Rs.1084 - Kotak
Result Update: Wonderla Holidays Ltd - BUY - TP Rs.457 - Kotak
Result Update: Asian Granito India Ltd - BUY - TP Rs.705 - Kotak
Result Update: NALCO - BUY - TP Rs.100 - Kotak
Result Update: VA Tech Wabag Ltd - BUY - TP Rs.672 - Kotak
Result Update: Greaves Cotton Ltd - REDUCE - TP Rs.136 - Kotak
PNB's 11300 cr fraud will impact the asset quality: Angel Broking
Lambodhara Textiles Ltd Q3 net profit climbs to Rs. 3.46 crores
Result Update: GHCL Ltd - BUY - TP Rs.365 - Kotak
CHHOTA (to) Mota Ideas - Result Update: Eveready Industries India Ltd - BUY - TP Rs.530 - Kotak
Result Update: Tata Motors - BUY - TP Rs.477 - Kotak
Result Update: Bajaj Auto Ltd - BUY - TP Rs.3670 - Kotak
Views on Indoco Remedies Ltd 3QFY2018: Angel Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018