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WIPRO LTD.

NSE : WIPROBSE : 507685ISIN CODE : INE075A01022Industry : IT - Software House : WIPRO
BSE244.20-2.7 (-1.09 %)
PREV CLOSE ( ) 246.90
OPEN PRICE ( ) 246.60
BID PRICE (QTY) 244.20 (85)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 136599
TODAY'S LOW / HIGH ( )243.70 247.40
52 WK LOW / HIGH ( )220.5 301.55
NSE244.15-2.95 (-1.19 %)
PREV CLOSE( ) 247.10
OPEN PRICE ( ) 246.95
BID PRICE (QTY) 244.15 (789)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 3164765
TODAY'S LOW / HIGH( ) 243.70 247.40
52 WK LOW / HIGH ( )222 301.6
AnalystEmailIdniharika@narnolia.com
AnalystNameNiharika Ojha
BSECode507685
CP1DesignationCEO
CP1NameMr. Abidali Z Neemuc
CP2DesignationCFO
CP2NameMr. Jatin Dalal
CP3DesignationNA
CP3NameNA
CallDate17 Jul 2019
Description1QFY20 Performance: Slow start to the year than expected by Wipro. Revenue being down sequentially 0.7%QoQ, a disappointing growth. Though 1Q is typically weak quarter for Wipro however macro uncertainties in the beginning of the year could not overcome during the quarter. Continued growth in Digital revenue: Digital business continues to see strong growth with sequential growth of 5.6% and annually growing at 34.6%.Digital revenue of Wipro now contributes 37.4%of the overall revenue. Client: The Company continued its focus on client mining. Top 10 accounts grew 13.2%YoY.The company had added 3 client in 100million dollar bucket and 1 client in 75 million dollar bucket. Automation: HOLMES is now in 350+ clients. Bots contributed 15% of FPP compared to 11.3% in 4QFY19. Top coder continues to see strong traction both from enterprise client as well as gig economy customers who want to leverage their gig economy .The company sees these as to be the way of working for the future. Margin :100 bps decline in 1QFY20 came on account of investment in MSI and salary increase for the year , investment in Utilization in 1Q and adverse impact of onsite /offshore mix which will normalize as the company go through the year .Some portion of impact was mitigated by forex benefit due to company’s superior realization that happened during the quarter. Lease accounting change had insignificant impact during the quarter. The company is focus on revenue trajectory back for FY20.Also the company will continue to be with very tight on execution progress. Vertical BFSI: During the quarter BFSI grew 11.2%YoY in cc. The company is gaining market share within this segment .However Capital market and European banking is seeing softness. The company is hoping as it sees delay and deferral is temporary and will improve as the company progress through the year. Consumer grew 7.7%YoY and negative growth of 4.4%QoQ in cc terms mainly impacted by completion of large programs .Though had good deal pipeline, the company saw deferral of programs that was expected to start in 1QFY20.The Company expects this business to pick up in 2QFY20 and beyond. Manufacturing: the company saw softness in manufacturing business and expects to continue to bit choppy in FY20 in European geography. Healthcare: Though the company saw a marginal growth of 0.5%YoY, However continues to see uncertainty in HPS business while beyond HPS see good traction . Demand environment: Overall demand environment is stable in the global markets but in pockets like banking and financial services the decision has been slower due to overall macro environment Dip in Utlization: Utilization declined because of two reasons;1)fresher hiring that they did during the quarter2) the bench that company had in anticipation of ramping up of some of the projects which got delayed .1QFY20 Wipro hired 6000 fresher and on boarded them globally, the company continues to invest in their employees. Localization: Reached 65% in US, up from 64% in the last quarter. They have very well established hiring program in place across the country.
SubjectQ1FY20 EARNING CONFERENCE CALL

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