Views on Wipro Limited 3QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking) on Wipro Limited 3QFY2017 Results:

Wipro (CMP: INR 473 / TP: INR 590/ Upside: 24.7%)

"Wipro posted results below expectations, it posted IT services revenues of US$1,903mn V/s US$1,919mn expected and V/s US$1,916mn in 2QFY2017, a QoQ de-growth of 0.7%. Revenue in Constant Currency (CC) came at 0.6% QoQ. In rupee terms, revenues came in at INR 13,687cr V/s INR 14,096cr expected V/s INR 13,766cr in 2QFY2017, dip of 0.6% QoQ.

It terms, of geography it was USA, which contributed around 55.5% of sales in 3QFY2017, 54.8% of sales in 3QFY2016. On CC terms, US posted a 1.0% QoQ, APAC and other emerging markets posted a 1.7% QoQ while Europe posted a 1.3% QoQ growth. On services side, the communications posted a 0.8% CC QoQ growth, Consumer Business Unit posted a 0.1% CC QoQ growth, Energy, Natural Resources & Utilities, posted a 2.1% CC QoQ growth, Finance Solutions, posted a 0.8% QoQ growth, Healthcare, Life Sciences & Services, posted a 0.1% CC QoQ growth, while Manufacturing and Technology, posted a 0.1% CC QoQ growth.

The company posted an EBIT of 16.9% V/s 15.9% expected V/s 15.8% in 2QFY2017, expansion of 110bps QoQ. Consequently, PAT, came in at INR 2,114cr V/s INR 2,124cr expected V/s INR 2,067cr in 2QFY2017, a growth of 2.3% QoQ. It terms, of the guidance, the company has guided for 4QFY2017 sales of US$1,916-1,955. On the positive side the company added 108 clients. The utilization levels remained almost same 71.6% in 3QFY2017 V/s 71.2% in 3QFY2016. We maintain our BUY rating on the stock, with a price target of INR 590."

Shares of WIPRO LTD. was last trading in BSE at Rs.473.45 as compared to the previous close of Rs. 481.1. The total number of shares traded during the day was 81265 in over 2887 trades.

The stock hit an intraday high of Rs. 482.9 and intraday low of 471.2. The net turnover during the day was Rs. 38829320.

Source : Equity Bulls

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