BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy
ICICI Securities Report
Wipro's IT Services revenue declined 7.5% QoQ in constant currency (CC) terms in Q1FY21 with Communication segment and Consumer Business unit revenues declining QoQ by 16.2% and 12.4% in CC terms respectively. Margin execution in Q1FY21 was especially stellar with margins (ex-other operating income) improving approximately 165 basis points to 19% with key tailwinds being meaningful improvement in operating metrics, focus on reducing discretionary spends and rupee depreciation.
We expects revenue growth to recover from Q3FY21 though FY21 revenue will still decline by approximately 7.5% in U.S. dollar terms with EBIT margin (IT Services including ISRE) likely to decline by 100bps. Though margins should eventually recover back in the range of 17-17.5% delivered in FY19/FY20, we conservatively model 16.7% for FY22.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
