Motilal Oswal: Wipro’s Q1 Revenues In Line; Margins A Surprise
A person walks in the Wipro office in Bangalore. (Photograph: Nishant Sharma/BloombergQuint)

Motilal Oswal: Wipro’s Q1 Revenues In Line; Margins A Surprise

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy

Motilal Oswal Report

Wipro’s ability to control costs and collections justifies the improvement in EBIT margin/cash conversion, despite the sharp drop in revenue first quarter. While full impact of the Covid-19 pandemic on pricing and working capital cycle is yet to play out, Wipro’s outlook on managing margin stability (verses last year) and healthy cash conversions are impressive.

Motilal Oswal upgrades their earnings per share for fiscal 2021 and 2022 by 6%-12% respectively largely led by margin surprise. Before turning constructively positive on the stock, brokerage awaits a refresh of the company’s strategy and further evidence related to execution.

Click on the attachment to read the full report:

Motilal Oswal Wipro Earnings.pdf


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