Wipro Q2 Review - Solid Beat, In-Line Q3 Guidance: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Wipro Ltd. reported a strong (8.1% QoQ constant currency) revenue growth in IT services in Q2 FY22, ahead of our estimate of 6.9%.
Organic growth (excluding Capco) of 4.5% QoQ also came in ahead of our estimate.
The management highlighted that the growth was broad based in Q2 FY22, including at Capco, which it is delivering ahead of plan.
Despite a merger and acquisition impact and wage hike, Ebit margin in IT services was flat QoQ at 17.8%, 170 basis point ahead of our estimate.
It reported a total contract value of $580 million in Q2 FY22, down 19% QoQ.
Wipro’s operational metrics remain impacted by supply tightness, with attrition increasing by 500 bps QoQ to 20.5% and utilisation of 89.2%, despite adding 11,500 employees.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.