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:

Jindal Steel & Power - Initiating Coverage - Angel Broking

Hurrah, Reliance is now a Consumer Company: Angel Broking

Shriram Transport Finance Company Ltd - Initiating Coverage - Angel Broking

Amber Enterprises India Ltd - Initiating Coverage - Angel Broking

Initiating Coverage on Bata India - Better brands for better growth - Angel Broking

IMP Powers' successful foray in renewable energy

Parag Milk Foods 4QFY2018 Result Update - Angel Broking

GMM Pfaudler Limited 4QFY2018 Result Update - Angel Broking

Result Update: Gabriel India Ltd - BUY - TP Rs.193 - Kotak

Result Update: Apollo Tyres - ACCUMULATE - TP Rs.300 - Kotak

Result Update: Havells India Ltd - SELL - TP Rs.500 - Kotak

Result Update: Chennai Petroleum Corporation Ltd - BUY - TP Rs.373 - Kotak

Result Update: Shankara Building Products Ltd - ACCUMULATE - TP Rs.2017 - Kotak

Result Update: Sun TV Network Ltd - ACCUMULATE - TP Rs.964 - Kotak

Result Update: Akzo Nobel India Ltd - BUY - TP Rs.2150 - Kotak

Syndicate Bank Q4 loss widens to Rs. 2195.12 crores

Result Update: Mahindra Holidays & Resorts India Ltd - BUY - TP Rs.390 - Kotak

Result Update: The Phoenix Mills Ltd - ACCUMULATE - TP Rs.676 - Kotak

Result Update: Blue Dart Express Ltd - BUY - TP Rs.4050 - Kotak

Result Update: Zee Entertainment Enterprises Ltd - ACCUMULATE - TP Rs.623 - Kotak

Result Update: Asian Paints Ltd - ACCUMULATE - TP Rs.1320 - Kotak

Result Update: Voltamp Ltd - BUY - TP Rs.1349 - Kotak

Result Update: Kajaria Ceramics Ltd - BUY - TP Rs.648 - Kotak

India's original E-Commerce Poster Boy sells out to Wal-Mart: Angel Broking

Result Update: Carborundum Universal Ltd - BUY - TP Rs.420 - Kotak

Result Update: Indocount Industries Ltd - BUY - TP Rs.103 - Kotak

Result Update: GE Shipping Company - SELL - TP Rs.350 - Kotak

Technology: CTSH results: on balance negative

Result Update: Greaves Cotton Ltd - BUY - TP Rs.153 - Kotak

Result Update: NIIT Technologies Ltd - ACCUMULATE - TP Rs.1083 - Kotak

Result Update: IRB Infrastructure Developers Ltd - ACCUMULATE - TP Rs.292 - Kotak

Result Update: Venky's India Ltd - REDUCE - TP Rs.3750 - Kotak

Result Update: Castrol India Ltd - BUY - TP Rs.213 - Kotak

Result Update: Radico Khaitan - ACCUMULATE - TP Rs.421 - Kotak

Q4 FY18 Result Update: Marico Ltd - ACCUMULATE - TP Rs.334 - Kotak

Q4 FY18 Result Update: Adani Port and SEZ - BUY - TP Rs.485 - Kotak

Q4 FY18 Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak

Q4 FY18 Result Update: Hero MotoCorp - BUY - TP Rs.4553 - Kotak

Q4 FY18 Result Update: Hindustan Zinc - REDUCE - TP Rs.318 - Kotak

Q4 FY18 Result Update: Container Corporation of India - BUY - TP Rs.1550 - Kotak

Q4 Result Update: Jindal Stainless Hisar Ltd - BUY - TP Rs.318 - Kotak

Ultratech Cement - Q4FY18 Result Update - Arihant Capital Markets Ltd

Company Update: Va Tech Wabag Ltd - BUY - TP Rs.672 - Kotak

K P Energy Ltd ties up for development of 300 MW wind power project Ltd - Initiating Coverage - Angel Broking

ACC Ltd Q1CY18 Result Update Rating - ACCUMULATE - Arihant Capital Markets

Company Update: Cummins India Ltd - BUY - TP Rs.862 - Kotak

FY18 Result Update: Tata Sponge Iron Ltd - REDUCE - TP Rs.1172 - Kotak

National highways: utilization and monetization - Kotak

Initiating Coverage: Parag Milk Foods Limited - Angel Broking

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

disclaimer copyright © 2005 - 2018