Wipro Q3 Results Review - Disconnect Between Order Book, Growth Concerning: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Wipro Ltd. reported Q3 FY23 IT services revenue growth of 0.6% QoQ constant currency (inline) due to weak macro and furloughs. Despite the easy Q3 comp (among the weakest topline growth in our large cap IT services coverage) and strong order intake ($4.3 billion, 1.5 times book-to-bill), Wipro has guided for a muted Q4 U.S. dollar CC revenue growth of down 0.6% to 1.0% QoQ.Q3 Ebit margin in IT services was up 120bp QoQ to 16.3%, ahead of our expectation of 15.4% due to better employee cost control and the reversal of one-off costs incurred last quarter. We were disappointed by Wipro’s weak implied Q4 FY23 revenue growth guidance, given the continued strength in deal momentum over the last few quarters. Management indicated that near-term deal conversion was affected by slower decision-making (macro overhang) and a longer tenure (four-five years) of transformation deals, especially the ones with hyperscalars (44% contribution of the total total contract value)..Click on the attachment to read the full report:.More Research Reports On Wipro's Q3 FY23 Results Review.Macro, Slowdown In Discretionary Spend A Key Dampener: IDBI CapitalRevenue Miss, OPM Expanded; Cautious Commentary On Spending: Dolat CapitalInline Growth, Better Operational Show: HDFC Securities TCV Provides Visibility For FY24; Revenue Conversion To Be Key: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Wipro Q3 Results Review - Disconnect Between Order Book, Growth Concerning: Motilal Oswal

Mgmt indicated that near-term deal conversion was affected by slower decision-making and a longer tenure of transformation deals

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