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WIPRO LTD.

NSE : WIPROBSE : 507685ISIN CODE : INE075A01022Industry : IT - Software House : WIPRO
BSE212.5513.25 (+6.65 %)
PREV CLOSE ( ) 199.30
OPEN PRICE ( ) 199.80
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 2479981
TODAY'S LOW / HIGH ( )196.35 214.75
52 WK LOW / HIGH ( )159.6 301.55
NSE212.8013.45 (+6.75 %)
PREV CLOSE( ) 199.35
OPEN PRICE ( ) 199.35
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 212.80 (315)
VOLUME 30630218
TODAY'S LOW / HIGH( ) 196.15 214.90
52 WK LOW / HIGH ( )159.4 301.6
AnalystEmailIdniharika@narnolia.com
AnalystNameNiharika Ojha
BSECode507685
CP1DesignationCEO & MD
CP1NameMr. Abidali Z Neemuc
CP2DesignationCFO
CP2NameMr. Jatin Dalal
CP3DesignationNA
CP3NameNA
CallDate15 Apr 2020
Description4QFY20 performance: The company revenue came within guided range of 0% to 2% in CC terms (0.4%QoQ cc). For full year FY20, the company grew at 3.9% in cc terms. IT Services Revenues for the quarter ended March 31, 2020 were negatively impacted by COVID-19 by approximately $14 -$16 million (0.7%-0.8% of revenues) First two months were strong for order book, closure of large deals and ramps ups across all of the projects but in March with the Covid 19 crisis, the key markets like US, Europe, UK and lockdown in India clearly resulted in accelerated impact in the business. Response to Covid crisis: AS the company realized the situation (early in China and then Philippines), they started with a global crisis task force. By early March the company managed to move most of its global employees to WFH. Today 93% of employees are approved to WFH by our client. Also 90% of the employees are actually engaged in delivering project globally and provide services to customers from WFH mode. Demand environment Though the company is very satisfied with actions of ensuring employee safety and at same time ramping up capabilities to service the customers, it still feels it is in the middle of a crisis and economic turbulence due to Covid 19. Based on various estimates, global GDP growth rates are expected to decline by at least 2% (assuming virus stays still 1Q).If the peak goes in July quarter, the decline in growth rate will remain more dramatic. This is creating a significant impact on Wipro’s customers business and hence cascading impact on IT spends. The company is already seeing instances of budget reduction, cut in discretionary spend, request for temporary discounts, pricing pressure and restructuring of interesting spends. The company is getting near term postponement of spend. Sectors like retail, hospitality, Energy (especially oil & gas) and Auto segment in manufacturing are seeing deeper impact. On other hand , communication and utilities there is no major change .BFSI showing mix reaction as seeing both tightening of spends due to interest threat and mortality as well as seeing opportunities due to quick response of various government on fiscal stimulus which will be positive for banking sector Strategy: The Company will focus proactively on their offerings (like modernization, cloud, automation, cybersecurity, analytic etc.) to gain market share in strategic accounts as well as take most consolidation opportunities. Outlook: Seeing the uncertainty in the environment and inability to predict the course of the health crisis, the company has decided to suspend the quarterly revenue guidance and will only resume with increase in certainty from the demand and supply side . Margin outlook: As the company expects revenue to reduce during the quarters, this will create significant impact in margins . The company will have trade off to make on hiring, on salary increases (which will due in this quarter),Discretionary spend done by the company , variable cost such subcontracting etc . The company anticipated that its working capital requirement would increase in the near term. Higher DSO: The company higher DSo’s in 4Q due to disruption on regular payment cycles as in the last two week most of the organizations were going through issues on payment .The company expects to catch up some of them in
SubjectQ4FY20 EARNING CONFERENCE CALL

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