Wipro Q3 Review: Strong Revival In IT Services Sales Growth, Ebit Margin At A 22-Quarter High, Says IDBI Capital
Wipro Bengaluru campus. (Source: BloombergQuint)

Wipro Q3 Review: Strong Revival In IT Services Sales Growth, Ebit Margin At A 22-Quarter High, Says IDBI Capital

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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.

IDBI Capital Report

Wipro Ltd.'s Q3 FY21 IT service revenue growth of 3.4% QoQ in constant currency terms was in-line with our forecast.

However, IT services Ebit margin of 21.7%, up 245 basis points QoQ was a big beat to our forecast. This resulted in consolidated Ebit margin improving by approximately 270 basis points QoQ to 21.2%.

Further, earning per share of Rs 5.2, up 20.3%/20.7% QoQ/YoY was also beat to our forecast.

Q3 FY21 large deal total contract value stood at $1.2 billion (including the $700 million deal from Metro AG).

Q4 FY21 guidance of IT services revenue growth of up 1.5% to up 35% QoQ in CC is inline with our expectation.

Click on the attachment to read the full report:

IDBI Capital Wipro Q3FY21 Result Update.pdf

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