Wipro Ltd's Q4FY19 consolidated net profit declines 1.1% qoq to Rs2,483cr : Beats Estimates

The company’s consolidated revenue stood at Rs15,006cr, down 0.4% qoq but up 9.0% yoy.

Apr 16, 2019 11:04 IST India Infoline Research Team

Wipro Ltd Q4FY19

Consolidated Results Q4FY19: (Rs in cr)

Q4FY19 QoQ (%)
Revenue 15,006.30 [0.4]
EBIT 2,546 [8.3]
EBIT Margin (%) 17 [147]
Net Profit (adjusted) 2,483.50 [1.1]
***EBIT margin change is bps
Wipro reported a mixed set of numbers for Q4FY19. Top-line declined by 0.4% qoq to Rs15,006cr, which is marginally lower than the median consensus estimates of Rs15,061cr. EBIT came in at Rs2,546cr, down 8.3% qoq, against median consensus estimate of Rs2,747cr. EBIT margin contracted by 147bps qoq to 17.0%. Reported PAT declined by 1.1% qoq to Rs2,483cr against median consensus estimate of Rs2,482cr.
  • IT Services grew by 1.0% qoq in constant currency terms (cc). IT services revenue came in at USD 2,075.5mn. IT services margins were at 19%.
  • Consumer Business Unit (+5.3% qoq cc) drove overall growth along with Health Business Unit (+2.1% qoq cc) which rebounded after being impacted from ramp downs. BFSI, up 1.3% qoq cc. BFSI growth has been stellar and this is after seven consecutive quarters  of ~3% qoq cc growth.
  • Energy, Natural Resources & Utilities declined by 0.1% qoq cc after three straight quarters of strong growth. Communications was down by 1.2% qoq cc, while manufacturing and technology were down by 0.7% qoq cc and 2% qoq cc respectively.
  • Amongst geographies, Americas drove growth, up 3.1% qoq cc, while Europe declined by 3% qoq cc. ROW was flat at +0.3%.
  • Digital grew 6.4% qoq and is now at 34.8% of overall revenue.
  • The company has added three accounts to USD75+ revenue bucket.
  • The company has guided for IT services revenues in the range of USD2,046mn to USD2,087 million which implies sequential growth of -1.0% to 1.0%. This is excluding the impact of the divestment of Workday and Cornerstone On Demand business.
  • The company has announced a buyback of up to 5.35% of paid up share capital. The total buyback size is Rs10,500cr at Rs325 per share.

Technical View:

Wipro Ltd is currently trading at Rs. 281.10, down by 7.05 points or 2.45% from its previous closing of Rs. 288.15 on the BSE.
The scrip opened at Rs. 291.30 and has touched a high and low of Rs. 291.95 and Rs. 278.10 respectively. So far 2,17,95,263 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

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