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Wipro Shares Drop Post Q4; Misses Consensus

Benzinga · 04/29/2022 10:13
  • Wipro Limited (NYSE:WITreported fourth-quarter FY22 gross revenue of $2.75 billion, an increase of 28.4% Y/Y, which missed the consensus of $2.8 billion.
  • IT Services revenue grew 26.4% Y/Y (3.1% Q/Q) to $2.7 billion. Non-GAAP constant currency IT Services segment revenue grew 28.5% Y/Y.
  • IT Services Operating Margin for the quarter was at 17%, down 60 bps Q/Q.
  • Net income rose 3.9% Y/Y (4% Q/Q) to $406.9 million. 
  • Operating Cash Flow was at $307.3 million.
  • EPS of $0.07 missed the consensus of $0.08.
  • CEO Thierry Delaporte said, “This is our sixth straight quarter of strong revenue growth at or over 3%. We are excited with the addition of Rizing and the CAS Group to Wipro’s service offerings.”
  • CFO Jatin Dalal said, “Our efforts on client mining have resulted in an addition of eight customers in more than $100 Mn bucket on YoY basis. We delivered operating margins of 17.7% for the year, after significant investments on solutions, capabilities, and talent.”
  • Outlook: Wipro sees Q1 IT service revenue of $2.748 billion - $2.803 billion, implying a 1%-3% Q/Q growth.
  • Price Action: WIT shares are down 4.26% at $6.52 on the last check Friday.