BackRamp up of deal wins to drive Wipro’s revenues in Q2: ICICI Securities
Wipro guided that its Q2 IT services revenues would be in the range of $2.53 billion-$2.58 billion, translating to 5.0-7.0% sequential growth.
PremiumNEW DELHI : Ramp up of deal wins is expected to help drive Wipro Ltd's revenues in the second quarter ended September, ICICI Securities said in a post earnings note.
Wipro guided that its Q2 IT services revenues would be in the range of $2.53 billion-$2.58 billion, translating to 5.0-7.0% sequential growth. Out of this, organic revenue growth could be in the range of 1.8-3.8% sequentially.
Wipro said it is winning multi-year and large deals, which are expected to drive growth. Based on deal wins, the management expects Wipro to achieve the top end of the guidance. “Further, we believe the company can clock about 14% organic growth in FY22 while the rest will be through acquisitions like Capco and Ampion.
“We believe sustained traction in deal wins and a large deal win in each quarter will help Wipro to garner healthy revenue growth in the longer term. In addition, traction in digital technologies such as cloud migration, hybrid cloud, cloud licensing, customer experience, cloud application and transformational deals is expected to lead to healthy growth in revenues," the brokerage firm said.
In terms of verticals, the company is seeing healthy traction in banking, financial services & insurance (BFSI), consumer and healthcare while manufacturing and energy & utilities is improving in coming quarters.
“We believe the turnaround strategy of the new CEO will help it in achieving industry leading growth in longer run. Hence, we have a positive view on the company from a long-term perspective," the brokerage firm said.
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