Wipro - Q3FY22 Result Update - First cut - YES SECURITIES

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

Wipro Q3FY22 Result First cut - Both revenue and EBIT margin slightly below expectation.
• Reported revenue of Rs 203.1bn( up 3.3% QoQ in INR terms- below expectation ). IT services revenue grew 2.3% QoQ in USD terms to $2.64bn. The revenue growth was led by strong performance in BFSI snd consumer verticals.
• EBIT margin was down 37 bos QoQ to 16.9%, mainly led by higher employee cost (cost of revenue) that grew 4.2% sequentially.
• Deal booking remained strong as it closed 11 large deals with TCV of over $600 mn.
• Total number of active customers increased by 31 QoQ to 1315. Total number of headcount increased by ~10,300 QoQ to 231,671. Net utilization was down 340 bos QoQ to 85.8 %, led by higher fresher onboarding and seasonal factor.
• LTM attrition increased by 220 bps QoQ to 22.7%, as demand for talent remains strong.
• Declared an interim dividend of Rs 1/ share.
• Guided for sequential revenue growth of 2-4% QoQ for Q4FY22.
• We currently have ADD rating on the stock.

Shares of Wipro Limited was last trading in BSE at Rs. 691.35 as compared to the previous close of Rs. 694.10. The total number of shares traded during the day was 373353 in over 11988 trades.

The stock hit an intraday high of Rs. 701.10 and intraday low of 683.15. The net turnover during the day was Rs. 257578473.00.

Source : Equity Bulls

Keywords

Wipro INE075A01022 Q3FY22 ResultUpdate FirstCut YESSecurities