Wipro - 3QFY23 Result First Cut - Reliance Securities

Mr. Mitul Shah - Head of Research at Reliance Securities

# Wipro reported a strong performance in 3QFY23 with IT services EBIT margin coming in at 16.3%, 152bps above our estimate of 14.8%.

# IT Services - Revenue remained flat on QoQ basis (up 6% YoY) CC in USD to US$2.8bn, broadly in line with our estimate of US$2.82bn. Sequential constant currency growth came in at 0.6% vs. our estimate of 1.4%.

# IT Services - EBIT grew by 11% QoQ (up 6% YoY) to Rs37.5bn while EBIT margin stood at 16.3% (up 115bps QoQ / down 130bps YoY), 152bps above our estimate of 14.8%.

# Its net income stood at Rs34.5bn (up 30% QoQ/up 16% YoY), 20% higher than our estimate of Rs28.8bn, while adjusted margin came in at 15% vs. our estimate of 12.3%.

# Total Bookings4 up by 26% and large deal bookings5 up by 69% YoY.

# Voluntary attrition6 moderated 180bps QoQ to 21.2% for the TTM in 3QFY23.

# The company expects revenue from IT Services business for the full year to be in the range of 11.5% to 12.0%, in constant currency terms.

Our View: Wipros' revenue was broadly in line with our expectations while its margins were above our expectation. Its restructuring efforts, which include simplified operating structure, step-up in capability upgrade and talent management under new leadership bode well for Wipro in the medium-term. TTM attrition has also started falling supporting margin expansion. At present we have a BUY rating on WPRO.

Shares of Wipro Limited was last trading in BSE at Rs. 393.65 as compared to the previous close of Rs. 394.45. The total number of shares traded during the day was 276649 in over 5700 trades.

The stock hit an intraday high of Rs. 397.20 and intraday low of 386.65. The net turnover during the day was Rs. 108545215.00.

Source : Equity Bulls

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Wipro INE075A01022 WIT Q3FY23 Result FirstCut