Views on Wipro Limited Q2FY2018 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking):

"Wipro announced its 2QFY2018 results today, the company posted results below expectations on sales front (on Constant Currency- CC terms), while EBIT and net profit was higher than expected. In US$ terms, it posted a 2.1% QoQ sequential growth in USD revenues to US$2,013mn V/s US$2,015mn expected. On CC terms, the company posted a 0.3% QoQ sales growth. In rupee terms, revenues came in at INR 13,420cr, down 1.5% QoQ. For 3QFY2018, the company has guided for sales of US$ 2,014-2,054mn.

Industries, which contributed to the growth, were Banking, Financial Services and Insurance posted a 3.3% CC QoQ growth, Manufacturing & Technology posted a 1.9% CC QoQ growth and Consumer Business Unit posted a 1.7% QoQ CC growth. The Industries, which posted a decline were Communications (a CC QoQ dip of 4.4%), Healthcare and Life sciences (a CC QoQ dip of 5.9%), Energy, Natural Resources & Utilities (a CC QoQ dip of 1.3%).

In terms, of geography USA posted a CC qoq dip of 0.1%, Europe posted a CC growth of 1.3% QoQ and APAC and Other Emerging Markets posted a CC QoQ growth of 3.4%. In terms of client addition of 41 clients were added, with 3 client additions happening in the US$50mn+. In terms of operational efficiency the gross utilization was 72.9% V/s 72.0% in 2QFY2018. In terms of attrition the rate was 15.7% V/s 15.9% in 1QFY2018.

EBIT margins came in at 16.8% V/s 15.9% expected, expansion of 85bps QoQ. Consequently, PAT came in at INR 2,190cr V/s INR 2,084cr expected, a QoQ rise of 5.1%. We would be revising our numbers."

Shares of WIPRO LTD. was last trading in BSE at Rs.289.35 as compared to the previous close of Rs. 290.05. The total number of shares traded during the day was 128223 in over 1255 trades.

The stock hit an intraday high of Rs. 292.5 and intraday low of 286.65. The net turnover during the day was Rs. 37205814.

Source : Equity Bulls

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