Q4FY22 Preview: Wipro: Revenues seen at Rs208,284 million, PAT at Rs31,399 million

27 Apr 2022 , 11:35 AM

Result date: 29^th April, 2022
Recommendation: Reduce
Target price: Rs600

Wipro is likely to meet the mid-point of its revenue growth guidance of 2-4% (sequential) for the March 2022 quarter. Its constant currency revenues (IT services) could grow 3% sequentially amid a healthy demand environment. Acquisitions of LeanSwift and Edgile will also contribute to the company’s topline growth.

Wipro’s EBIT margins could expand 60 bps sequentially, helped by higher forex gains.

Profit After Tax (PAT) is likely to grow 5.8% on a sequential basis.

Company is likely to guide for a 2-4% sequential revenue growth in Q1FY23.

Important management insights to watch out for:
·         Quantum and number of large deal wins
·         Deal pipeline for FY23
·         Q1FY23 guidance
·         Supply-side issues and attrition trends

	March 2022 estimates	QoQ change	YoY change
Revenue (US$ mn)	2,709	2.6%	25.8%
Revenue (Rs. mn)	208,284	2.5%	28.2%
EBIT (Rs. mn)	36,566	6.5%	9.9%
EBIT margin	17.6%	70 bps	(290) bps
Profit After Tax (Rs. mn)	31,399	5.8%	5.6%
EPS (Rs.)	5.7	5.8%	6.5%

Source: IIFL Research