Wipro Q4 Review - Lofty Multiples Leave Limited Margin Of Safety: ICICI Securities

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ICICI Securities Report

While Wipro Ltd.’s revenue growth was in-line, Ebit margin was slightly ahead of our estimates. Growth was fairly broad based across key geographies and most verticals.

Share of offshore revenue, gross utilisation and IT attrition (trailing twleve months) witnessed sequential uptick.

Large deal total contract value ($1.4 billion versus $1.2 billion in December 2020) was healthy and the management indicated its composition is skewed towards new deals (versus renewals).

Prima facie, the company’s recent focus on large deals seem to be bearing fruit. However, the sustainability of this large deal momentum is yet to be seen.

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