Wipro Q1 Review - Turnaround On Track, But Valuation Leaves Little Room For A Miss: Motilal Oswal
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Motilal Oswal Report
Wipro Ltd. reported a strong, broad based sequential growth (12% constant currency) in Q1 FY22.
The organic sequential growth of 4.9% was the highest in the past nine years and was above the management’s guidance (2-4% QoQ constant currency) and our estimate.
Capco contributed two months of revenue in Q1 FY22 and witnessed a strong sequential growth.
Wipro's Ebit margin from IT services dipped 340 basis points QoQ to 17.6% (excluding a one-time gain from sale of investments, 50 bps above our estimate) on account of the Capco acquisition (130 bps), partial wage hike for senior employees, and investments in talent.
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