Demand for IT Services remain strong: Wipro

Wipro: Strong demand for IT Services

by Shreya Anaokar Last Updated: Mar 13, 2023 - 01:22 pm 1.9M Views
Listen icon

Wipro observed that the demand for IT services remains strong aided by transformation projects and cloud adoption. For clients with IT services vendors that are affected by the Ukraine-Russia war, Wipro is becoming an additional vendor for the clients. However, at this stage, the incremental business has been limited. While European clients are in a halt mode given the eastern European war, there has been no slowdown in technology spending so far. Wipro reiterated its guidance of 2-4% q-q growth in revenues in constant currency for 4QFY22.

Narrowed EBIT Margins: 

For the 9 months period in FY22, Wipro has operated in a narrow EBIT margin range of ~18.1% despite challenges on salary costs due to an increase in industrywide attrition. Wipro continues to optimize the pyramid, and its efforts to train its employees on new skills are helping it to address the increasing demand for new skills.

Impact of CEO’s 5 pillar strategy:

CEO of Wipro, Thierry Delaporte, outlined five key pillars of his strategy in Nov 2020. These include a focus on revenue growth, sales transformation, a solution-focused approach, simplification of organizational structure, and nurturing talent. There is significant progress in each of these areas, as evidenced in the company’s organic growth rate converging to the industry level in the 9MFY22 period.

M&A Strategic Pillar for Growth: 

M&A is a key strategic pillar of growth for Wipro with a focus on acquisitions to fill capability gaps and deepen its presence in new verticals. Capco acquisition is progressing on track as evidenced in strong growth in BFSI vertical in the last few quarters. Wipro aims to maintain its payout ratio of 45-50% despite its M&A activities. 

Wipro’s revenue is expected to grow between 17-25% with a stable EBIT margin over FY22-23
 

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 

Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Swing Trading Stocks: Week of 01 April 2024

Swing Trading Stocks for the Week

Weekly Market Outlook for 1st April to 5th April

The week gone by was a truncated week of three trading sessions, but it was not short of any action as the index witnessed a smart recovery in three days. Nifty almost tested the previous all-time high above 22500 on the expiry day and ended just above 22300 with weekly gains of a percent.

Stock in Action – Bajaj Finance

Bajaj Finance Movement of Day