Wipro Q1FY22RU - First cut by YES SECURITIES

Mr. Piyush Pandey, Lead Analyst - Institutional Equities, YES SECURITIES

Wipro Q1FY22: First cut-Revenue growth at 12% QoQ in USD terms for IT services was slightly above estimate even after considering the completion of Capco acquisition in the quarter. Growth was broadbased with some softness in manufacturing vertical.

For Q2FY22, it has provided strong revenue guidance of 5-7% sequential growth in IT services.(Capco impact is considered)

Excluding other operating income, Consolidated EBIT margin was down 330 bps QoQ, as per expectation due to wage hike and adverse margin impact of Capco acquisition.

- Net utilisation increased by 80 bps QoQ to 86.8%.

- LTM Attrition increased by 340 bps QoQ to 15.5%. Added 12,000 employees in the quarter.

- Added 129 customers in the quarter compared to 52 addition in Q4FY21.

Overall, the performance was as per expectation with strong guidance for Q2FY22. We have ADD rating on the stock, considering the current valuation.

Shares of WIPRO LTD. was last trading in BSE at Rs.575.75 as compared to the previous close of Rs. 561.6. The total number of shares traded during the day was 1162742 in over 22675 trades.

The stock hit an intraday high of Rs. 579.75 and intraday low of 559. The net turnover during the day was Rs. 665689639.

Source : Equity Bulls

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