Wipro Q3 FY22 Preview: Revenues seen at Rs203,439 million, PAT at Rs30,308 million

12 Jan 2022 , 08:24 AM

Result date: 12th January, 2022
Recommendation: REDUCE
Target price: 655
(Source: Company, Bloomberg, IIFL Research)

Wipro will be announcing its results for Q3FY22 post market hours on January 12, 2022.

The IT company is likely to witness sequential revenue growth of 3.9% in constant currency terms (organic growth of 3.7% cc QoQ). It is likely to meet the upper end of its guidance range of 2-4%, aided by one month of revenue from ion and strong demand momentum.

Wipro could report an EBIT margin contraction of 10bps QoQ, due to the impact of wage hikes (two months for 80% employees), partly offset by rupee depreciation.

Company could guide for revenue growth of 2-4% QoQ for Q4FY22.

Important management insights to watch out for:
– Quantum and number of large deal wins
– Commentary about the deal pipeline for CY22
– Commentary about supply-side issues and attrition trends

	December 2021 estimates	QoQ change	YoY change
Revenue (US$ mn)	2,658	3.0%	28.4%
Revenue (Rs. mn)	203,439	3.4%	29.8%
EBIT (Rs. mn)	34,992	3.0%	5.2%
EBIT margin	17.2%	(10) bps	(400) bps
Profit After Tax (Rs. mn)	30,308	3.4%	2.2%
EPS (Rs.)	5.5	3.4%	6.4%

Source: Bloomberg, IIFL Research