Wipro Q1 Review - Results Beat; Guidance Robust; To Prioritise On Growth Over Margin: Dolat Capital
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Dolat Capital Report
Wipro Ltd. reported 12% QoQ constant currency growth (our estimate: 10%) led by robust growth momentum across business units, driving organic revenue growth of 4.9% QoQ.
IT services operating profit margin stood at 18.8% down 222 basis points QoQ (our estimate: 18.7%) led by lower than expected wage hike impact and growth leverage.
Encouraging quarterly guidance for Q2 at 5%-7%, implies sustained traction although half of this growth is expected to come inorganically.
Added new total contract value of $750 million much softer than past run rate as did not see any mega-size deal addition in the quarter.
The growth confidence is also led by strengthening of leadership in last two to three quarters.
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