2025-05-01 05:06:35
Latest Post
Monarch Networth Capital IFSC Pvt. Ltd. receives Registered Fund Management Entity (Retail) License from IFSCA, GIFT City
Lucent Industries Ltd enters into partnership agreement with Clusterdev Technologies Pvt Ltd
South Indian Bank hosts Season 1 of National Co-lending Summit - SEED
Inox Green signs agreement for O&M of 675 MWp of solar projects
Union Bank of India Launches MSME & CASA Outreach Programs to pass on benefits of back to back RBI-MPC rate cuts and Deepen Customer Engagement
Research
Wipro Ltd - 1QFY2018 Result Update - Angel Broking
Posted On : 2017-07-26 20:53:02( TIMEZONE : IST )
For 1QFY2018 Wipro announced a good set of numbers. The IT services sales came in at US$1,971.7mn v/s. US$1,950mn expected, a qoq growth of 0.9%, while in Constant Currency (CC) terms qoq growth of 0.3%.On operating front, the EBIT margins came in at 16.2% v/s. 14.3% in 4QFY2017.This was against the expectations of 13.0%. The net profit during the quarter was Rs. 2,083cr v/s. Rs. 1,659cr expected, a qoq dip of 8.1%. For 2QFY2018, the company expects revenues from its IT Services business to US$1,962-2,001mn, growth in the range of (0.5)-1.5% qoq. The Board of Directors approved a buyback proposal for purchase by the company of up to 343.75mn equity shares of ?2 each (representing 7.1% of total equity capital). The buyback price will be ?320/share payable in cash for an aggregate amount not exceeding Rs. 11,000cr. We maintain our neutral rating.
Quarterly highlights: The IT services sales came in at US$1,971.7mn v/s. US$1,950mn expected, a qoq growth of 0.9% qoq, while in Constant Currency (CC) terms qoq growth of 0.3% was registered. In Rupee terms, revenues came in atRs. 13,626cr v/s. Rs. 12,610cr expected, a qoq dip of 2.6%. On operating front, the EBIT margins came in at 16.2% v/s. 14.3% in 4QFY2017, mainly driven by the better than expected growth and internal efficiencies. This was against the expectations of 13.0%. The net profit during the quarter was Rs. 2,082cr v/s. Rs. 1,659cr expected, a qoq dip of 8.1%. For 2QFY2018, the company expects revenues from its IT Services business to be in the range of $1,962mn to $2,001mn.
Outlook and valuation: The management has set a target of US$15bn of revenue and an EBIT margin of 23% by 2020. However, the near term guidance target appears to be disappointing. Nevertheless, we project a moderate top-line and net profit growth for FY2017-19E. However, given the valuations, we maintain our neutral rating.
Shares of WIPRO LTD. was last trading in BSE at Rs.289.95 as compared to the previous close of Rs. 289.85. The total number of shares traded during the day was 371863 in over 3032 trades.
The stock hit an intraday high of Rs. 291.4 and intraday low of 286. The net turnover during the day was Rs. 107763429.
