Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 228398.46 Crore) operating in IT Software sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 16324.10 Crore, up 4.30 % from last quarter Total Income of Rs 15651.40 Crore and up 1.52 % from last year same quarter Total Income of Rs 16080.20 Crore. Company reported net profit after tax of Rs 2987.70 Crore in latest quarter.
Investment Rationale
Wipro is expected to report 3.0% QoQ growth (in CC terms) in revenues mainly led by healthy volumes in small & medium deals and ramp up of deals. Further, with cross currency tailwind, we expect dollar revenues to increase 3.9% QoQ. EBIT margins in global IT services are expected to decline 148 bps QoQ mainly due to wage hike and lower utilisation. In rupee terms, overall revenues are expected to increase 2.8% QoQ. Overall EBIT margins are expected to decline 143 bps QoQ to 20.2%. Investor interest: progress on Capco acquisition, second wage hike, deal pipeline, vertical commentary, commentary of client’s IT Budget, ramp up of large deals won (like Metro & Telefonica)
Promoter/FII Holdings
Promoters held 74.01 per cent stake in the company as of Dec 31, 2020, while FIIs held 8.46 per cent, DIIs 6.08 per cent and public and others 11.45 per cent.
