INSUBCONTINENT EXCLUSIVE:
Wipro shares fell as much as 6.27 per cent to hit an intraday low of Rs 648.New Delhi: New Delhi: Shares of Wipro slipped more than 6 per
cent on Thursday, a day after the Indian IT services provider reported a subdued profit in the third quarter (Q3) of the financial year
As of 11.33 am, the stock was down 5.73 per cent to Rs 651.75
The scrip fell as much as 6.27 per cent to hit an intraday low of Rs 648.Wipro posted a consolidated net profit of Rs 2,969 crore for the
December 2021 quarter, almost flat compared to the year-ago period
It had registered a profit of Rs 2,968 crore in the December 2020 quarter. Wipro larger peers -- Tata Consultancy Services and Infosys --
posted strong results amid an upbeat demand outlook.The IT company reported a 29.6 per cent rise in revenue for the December quarter as
against Rs 15,670 crore posted in the same period last year.Should You Buy, Sell or Hold?Emkay Global Financial Services has given a 'Hold'
call for the IT firm while "considering rich valuations" along with a target price of Rs 700."Wipro's IT services revenue grew 2.3 per cent
quarter-on-quarter (Q-o-Q) to $2.64 billion in Q3 2021-22 (FY22), a tad below our estimates
IT services' EBITM (Earnings Before Interest Taxes and Management) declined 10 basis points (Q-o-Q) to 17.6 per cent as revenue momentum and
operating efficiencies largely negated wage hikes and lower utilization," Emkay Global stated in its report."The company signed 11 large
deals with a combined contract value of over $600 million in Q3, while the total order intake was $2.8 billion
Management said the deal pipeline was robust and consisted of a good mix of small and large deals, providing good revenue visibility
We tweak our FY22E/FY23E/FY24 (estimates) earnings per share by -0.6 per cent to 0.2 per cent, factoring in Q3 performance," it
added.Motilal Oswal Institutional Equities has maintained a 'Neutral' stance with a target price of Rs 720."We marginally lower our
FY22–24 (estimates) earnings per share by 1 per cent
We maintain our Neutral stance as we await further evidence of the execution of Wipro's refreshed strategy and, a successful turnaround from
its growth struggles over the last decade before turning more constructive on the stock," Motilal Oswal stated.
