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WIPRO LTD.

NSE : WIPROBSE : 507685ISIN CODE : INE075A01022Industry : IT - Software House : WIPRO
BSE249.60-2.85 (-1.13 %)
PREV CLOSE ( ) 252.45
OPEN PRICE ( ) 252.60
BID PRICE (QTY) 249.60 (54)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 264659
TODAY'S LOW / HIGH ( )248.35 252.65
52 WK LOW / HIGH ( )227.25 301.55
NSE249.45-3.1 (-1.23 %)
PREV CLOSE( ) 252.55
OPEN PRICE ( ) 252.50
BID PRICE (QTY) 249.45 (2558)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 2878437
TODAY'S LOW / HIGH( ) 248.30 252.50
52 WK LOW / HIGH ( )226.99 301.6
AnalystEmailIdniharika@narnolia.com
AnalystNameNiharika Ojha
BSECode507685
CP1DesignationCEO & ED
CP1NameMr. Abidali Z Neemuc
CP2DesignationCFO
CP2NameMr. Jatin Dalal
CP3DesignationNA
CP3NameNA
CallDate15 Oct 2019
Description2QFY20 performance: The company had good quarter execution in revenue and margins considering the slow start in this fiscal year. Revenue grew1.1%QoQ in cc terms at the midpoint of guidance range of 0% to 2% .For H1 Company grew 4.8%QoQ in cc terms. Margin performance: Margin during the quarter was managed to within the narrow range of 18% to 18.5% mainly driven by cost optimization from lower marketing and sales expenses, better collection, and benefit from cost line improved the margin (1.2% improvement), however it was offset by investment made by company on bench, two months impact of wage hike and continued investment in digital, cloud, engineering (adversely impacted 1.1%).Going ahead, as the company priority is towards growth , the company will continue to remain invested in commitment made on big bets as well as remain committed to some of work done on building right capabilities. The company will not hesitate to invest if needed. Top client performance: As the company top client happens to the bank and company is doing digital work for them However given the current macro uncertainty as some projected got over in digital , the company saw softness in top client performance .Also company is seeing slowness in renewal of those project and thus remain uncertain for 3QFY20 outlook . ETR rate: Due to tax changes during the course of this quarter whereby the ETR was 18.3% however going forward company expects ETR to be in 20% to 21% band. Localization: Reached 68% in US, up from 65% in the last quarter. The company is continued to do campus hiring, deepening employee engagement and continue to make significant investment in training and reskilling the employees. Automation: HOLMES is now in 350+ clients. Bots contributed 16.5% of FPP compared to 15.1% in 4QFY19. Vertical performance BFSI: The Company had strong set of offerings and robust pipeline of digital deals .The growth however has decelerated in 2Q due to softness in spend by banking and capital market clients and completion of large digital transformation projects. For 3QFY20 due to furlough, the company will continues to see same or slightly more worse performance from BFSI segment (Challenges in capital market in Europe).Hopeful of uptick once the IT budget is decided . Consumer: In line with expectation of the company the consumer vertical grew well on back of good deal win. Despite challenges the company is confident of strong growth in this segment and does not see any headwinds coming in near term. Communication: The global business in communication grew in double digit during the quarter while the India business which contributes to large portion in communication remained volatile impacting the overall growth of this segment. The company is seeing traction to continue in this segment. Healthcare: Outside of HPS, the company is winning well in the rest of the business and expects to continue to see growth in this vertical. Manufacturing: the company going through restructuring and see strong pipeline. Hopeful of turnaround however expects to improve in couple of quarters. Demand Environment: The demand environment remained unchanged, though there continues to be overhang of macro uncertainty in certain sectors. US growth is pretty strong while Europe continued to be weak. The company continues to see robust pipeline and momentum of order book in 2Q (net new wins like ICICI bank and from US mid tier banks )has been better than 1Q and some deal that the company has mention of delayed in 1Q, has been signed in 2Q.
SubjectQ2FY20 EARNING CONFERENCE CALL

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