Wipro reported a mixed set of numbers for Q1FY20. Top-line declined by 1.9% qoq to Rs14,716cr, which is lower than the median consensus estimates of Rs 14,874cr. EBIT came in at Rs 2,382cr, down 6.4% qoq, against median consensus estimate of Rs2,485cr. EBIT margin contracted by 78bps qoq to 16.2%. Reported PAT declined by 3.9% qoq to Rs2,387cr against median consensus estimate of Rs2,298cr.
IT services INR revenue declined by 1.6% qoq to Rs14,351cr and Dollar revenue declined by 1.3% qoq to USD2,038.8mn.
Constant currency (cc) IT Services Segment revenue declined by 0.7% qoq.
IT services EBIT margin came in at 18.4% vs. 19% in Q4FY19 and 17.6% in Q1FY19.
Consumer Business Unit dragged growth (-5% qoq cc), while most other SBUs like BFSI, Energy, Natural Resources & Utilities and Health Business were down by 1.2% to 1.6% qoq cc. Manufacturing was down 2.3% qoq cc.
Communications (+1.8% qoq cc) and Technology (+2.6% qoq cc) were the only SBUs that posted growth.
Amongst geographies, Americas was flat while Europe declined by 2% qoq cc and ROW declined by 5.0% qoq cc.
Digital grew by 34.6% yoy, now accounts for 37.4% of overall revenue.
The company has added 3 accounts to USD100mn+ revenue bucket.
The company has guided for IT services revenues in the range of USD2,039-2,080mn, which implies sequential growth of 0.0% (flattish) to 2.0%.
Wipro Ltd ended at Rs. 259.70, down by 0.35 points or 0.13% from its previous closing of Rs. 260.05 on the BSE.
The scrip opened at Rs. 262.75 and touched a high and low of Rs. 262.90 and Rs. 258.25 respectively. A total of 61,15,145 (NSE+BSE) shares were traded on the counter. The stock traded above its 50 DMA.
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