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Wipro Q4 Review - Results Miss At All Fronts; Guidance Continues To Disappoint: Dolat Capital

Wipro Q4 Review - Results Miss At All Fronts; Guidance Continues To Disappoint: Dolat Capital

<div class="paragraphs"><p>A Wipro Ltd. logo at the company's office building in&nbsp; Bengaluru, India. [Photographer: Dhiraj Singh/Bloomberg]</p></div>
A Wipro Ltd. logo at the company's office building in  Bengaluru, India. [Photographer: Dhiraj Singh/Bloomberg]

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.

Dolat Capital Report

Wipro Ltd. reported 3.1% QoQ constant currency growth below our estimate of 4.0% QoQ but in-line with the 2% - 4% sequential guidance for Q4.

IT services Ebit margin declined by 60 basis points QoQ to 17.0% (our estimate: 17.6%) due to supply side investments (employee cost up by 5.6% QoQ and headcount up 4.9% QoQ).

Quarterly guidance for Q1 is at 1%-3% implying softness from Q4’s guidance of 2% - 4% which included 50 bps inorganic contribution and Q4’s performance of 3.1%.

Yet Wipro is still confident on demand and has shared outlook for double digit growth in FY23 and attributes Q1’s guidance within the 'rhythm of the business'.

Large deal total contract value was lackluster at ~$425 million (includes ~9 large deals).

Click on the attachment to read the full report:

Dolat Capital Wipro Q4FY22 Result Update.pdf

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