1QFY21 results of WIPRO - Mr. Jyoti Roy, DVP - Equity Strategist, Angel Broking Ltd

"Wipro reported a 7.3% qoq degrowth in IT services revenues to USD 1.92bn which was in line with market expectations. In rupee terms consolidated revenue contracted by 5.1% qoq to Rs. 14,913 crore while gross profits increased by 5.7% qoq to Rs. 4,543 crore. Gross margins expanded by 311bps qoq to 30.5% given a sharp decline in cost of revenues by 9.1% qoq. Consolidated operating profit for the quarter was up by 2.1% qoq while consolidated operating margins were up by 127bps qoq to 18.1%. Operating margins for the IT services business improved by 140bps qoq to 19.0%. Net profit for the quarter was up by 2.8% qoq to Rs. 2,390 crore. While the Q1FY21 revenues were in line with street estimates margins and profits came in well above street estimates due to cost control by the company. Markets will also look forward to management commentary and their outlook for the rest of the year given likely budget cuts by clients."

Shares of WIPRO LTD. was last trading in BSE at Rs.262.95 as compared to the previous close of Rs. 225.05. The total number of shares traded during the day was 6313161 in over 76545 trades.

The stock hit an intraday high of Rs. 265.5 and intraday low of 233.8. The net turnover during the day was Rs. 1629694172.

Source : Equity Bulls

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