Wipro Limited Q3 FY22 – Earning Highlights – Globe Capital
13-Jan-2022
Wipro Limited Q3 FY22 – Earning Highlights

The Company has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. It has strong order books also & added new customers in this quarter.

Q3 FY22 Overview and Verdict
CMP
Rs. 691
Verdict
Inline with the Expectations

Earning Highlights Q3FY22

  • Gross Revenue was ₹203.1 billion ($2.7 billion1), an increase of 3.3% QoQ and 29.6% YoY
  • IT Services Segment Revenue was at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY
  • Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.0% QoQ and 28.5% YoY
  • IT Services Operating Margin3 for the quarter was at 17.6%, a decrease of 19 bps QoQ
  • Net Income for the quarter was ₹29.7 billion ($399.1 million1), increase of 1.3% QoQ
  • Earnings Per Share for the quarter was at ₹5.43 ($0.071), an increase of 4.2% YoY
  • Operating Cash Flow was at ₹30.1 billion ($404.2 million1), which is 101.3% of Net Income
  • Its closing strength of employees for IT Services was at 231,671, an increase of 41,363 employees on a net basis YoY. It added 10,306 employees during the quarter
  • Wipro declared an interim dividend of ₹1 ($0.0131) per equity share/ADS

 

Management View:

The Company expects to hire about 30,000 freshers in FY23, as the IT services major strives to ensure that supply is not a constraint in managing the robust demand environment.
Attrition is a reality across almost all industries. It has been no different for the Company. The Company had shared with media last quarter that it expects attrition to slow down only after a few more quarters. However, it now feels more confident of having stabilized its attrition rates in Q3, and expect it to moderate next quarter.
Outlook for the quarter ending March 31, 2022 – The Company expects Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million. This translates to a sequential growth of 2.0% to 4.0%.

 

Valuation & View:

At the CMP of Rs 691, the stock is trading at annualized P/E multiple of 31 times with the annualized EPS of Rs 22.28, which is fairly valued.

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