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Wipro Ltd (Q3 FY14)

India Infoline News Service | Mumbai |

Wipro reported slightly slower than expected constant currency (CC) dollar revenue growth in its IT services segment at 2.3% qoq (our estimate was 2.6% qoq).

CMP Rs552, Target Rs650, Upside 17.8%

  • Revenue growth/Q4 FY14 guidance marginally behind expectations; but growth convergence with industry continues 

  • Growth disparate within verticals/services; sustained progress on client mining

  • Material OPM expansion was heartening; longer-term outlook is positive

  • Earnings upgraded on better margin performance; 9-12 month TP raised to Rs650

Result table
(Rs mn)
Q3 FY14
Q2 FY14
% qoq
Q3 FY13
% yoy
Net sales
113,317
109,920
3.1
95,887
18.2
Operating profit
26,527
25,038
5.9
20,501
29.4
OPM (%)
23.4
22.8
63 bps
21.4
203 bps
Depreciation
(3,109)
(2,616)
18.8
(2,472)
25.8
Interest
(898)
(656)
-
(472)
-
Other Income
3,812
3,412
11.7
2,896
31.6
PBT
26,332
25,178
4.6
20,453
28.7
Tax
(6,060)
(5,754)
5.3
(4,472)
35.5
Effective tax rate (%)
23.0
22.9
-
21.9
-
Minority Interest
(125)
(103)
-
(90)
-
Adjusted PAT
20,147
19,321
4.3
15,891
26.8
Adj. PAT margin (%)
17.8
17.6
20 bps
16.6
121 bps
Profit from Discontd Op 
-
-
-
1,273
-
Reported PAT
20,147
19,321
4.3
17,164
17.4
EPS (Rs)
8.2
7.9
4.3
7.0
17.4
Source: Company, India Infoline Research

Revenue growth/Q4 FY14 guidance marginally behind expectations; but growth convergence with industry continues 

Wipro reported slightly slow









 

 
 
 
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