The IT company's March quarter net profit was flat over the preceding quarter at ₹2,972 crore versus ₹2,897 crore consensus estimates of analysts tracked by Bloomberg.
Revenue was up 3.67% quarter-on-quarter (q-o-q) to ₹16,245 crore against estimates of ₹16,077 crore. Revenue from IT services stood at $2,152.40 million, up 3.9% over the previous quarter.
Margins narrowed to 20.5% from 21.2% earlier, but beat analyst estimates of 20.1%.
The company expects its revenue to grow 11-13% in FY21-22. For the June quarter, Wipro expects 2-4% growth excluding new acquisitions Capco and Ampion.
Total contract value of Wipro's order book in the second half of FY21 increased by 33% year-on-year (y-o-y) to $7.1 billion, including large deal booking of $1.2 billion and $1.4 billion in the third and fourth quarters, respectively. In addition, the overall deal pipeline continues to remain strong, and the company expects a large deal pipeline to be better than what it has seen in the second half of FY21.
Analysts expect deal bookings to remain robust for the company. This bodes well for strong growth in FY22e.
"Wipro growth outlook has improved significantly under the new leadership. Wipro has been lagging its larger peers in the past few years with only low single digit organic CC (constant currency) revenue growth. Although we believe the growth profile of Wipro should improve in the medium term, still expect it to report growth 200-300 bps lower than its larger peers in FY22/23e" said Antique Stock Broking in a note to its investors.
"We value Wipro at 22x forward PE multiple on FY23e earnings which gives us target price of ₹500. Our valuation multiple to Wipro is at 25% discount to its larger peers on lower long term growth expectations. We have increase our FY23 EPS by 6% led by better-than-expected results and change in INR:USD assumption to 75 (vs 72.5 earlier)," Antique Stock Broking added.
According to Kotak Institutional Equities, Wipro is making good progress in its turnaround journey. Growth from large clients, energizing the organization and large deal wins are a good indicator of progress. The brokerage firm has raised FY2022-24E revenue estimates by 2-3% to capture the Ampion acquisition and higher organic revenue growth.
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