WIPRO LTD - Q2 FY 21- RESULTS REVIEW - DT 13 10 20

 

WIPRO LTD

Q2 FY 21 RESULTS REVIEW

DT 13 10 20

 

  Azim H Premji  Founder Chairman

  Rishad Premji  Chairman

  Thierry Delaporte  Managing Director & CEO

 

QUARTERLY RESULTS

 

Quarterly Results of Wipro (in Rs. Cr.)	SEP'20	Jun '20	Sep '19	YOY	QOQ
Net Sales	15114.5	14,913.10	15,125.60	-0.07	1.35
Other Operating Income	-17.8	9.7	5	-456	-283.51
FOREX GAIN	33.8	120.5	59.1	-42.81	-71.95
Total Income From Operations	15130.5	14,922.80	15,130.60	0	1.39
EXPENDITURE
Purchase of Traded Goods	166.6	176.6	135.7	22.77	-5.66
Increase/Decrease in Stocks	33	17.6	144.3	-77.13	87.5
Employees Cost	8316.8	8,026.20	8,126.60	2.34	3.62
Depreciation	658	615.2	481.2	36.74	6.96
TECH.FEES	2024	2121.8	2242.3	-9.74	-4.61
FACILITY EXPENSES	534.4	462.7	504.8	5.86	15.5
TRAVEL	126.4	129	454.9	-72.21	-2.02
COMMUNICATION	180.1	135.4	114.6	57.16	33.01
LEGAL FEES ETC	122.4	131.1	123.9	-1.21	-6.64
MKTG & BRAND BLDG	26.7	12.9	49.1	-45.62	106.98
CREDIT LOSS	25.6	158.9	19	34.74	-83.89
Other Expenses	103	361.90	119.60	-13.88	-71.54
TOTAL EXPENSES	12317	12,349.50	12,516.20	-1.59	-0.26
FINANCE COSTS	647	661.1	910.2	-28.92	-2.13
P B T	3207.1	3,095.10	3,134.30	2.32	3.62
Tax	722.8	683.8	573.1	26.12	5.7
Net Profit	2484.3	2,411.30	2,561.20	-3	3.03
TOTAL OTHER COMPREH.INCOME	68.2	498.9	130.2	-47.62	-86.33
TOTAL COMPRE.INCOME	2552.5	2910.2	2691.4	-5.16	-12.29
Equity - FV Rs.2	1143	1,142.90	1,142.60	0.04	0.01
Basic EPS	4.33	4.2	4.3	0.7	3.1
Diluted EPS	4.32	4.19	4.29	0.7	3.1

 

MP  357

PE   21.8      

52 Wk L/H     159.6     381.7

Historical Prices                

       3YR BEF Current Price %Gain / Loss

       220.39   378             71.51

       234.98   378             60.86

       237.6     378             59.09

 

ANNUAL RESULTS :

Annual	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	61,137	59,018	54,487	55,448	51,244
Other Income	2,725	2,613	2,548	2,622	2,752
Total Income	63,862	61,632	57,035	58,071	53,996
Total Expenditure	50,880	49,348	46,211	46,437	41,944
EBIT	12,981	12,284	10,824	11,633	12,051
Interest	732	737	583	594	558
Tax	2,480	2,524	2,239	2,521	2,536
Net Profit	9,768	9,022	8,002	8,517	8,957

 

Valuation

Market Cap (Rs Cr.)    2,14,739.86

P/E                             24.25

Book Value (Rs)          81.28

Dividend (%)              50

Industry P/E                29.01

EPS (TTM)                  15.5

Price/Book                  4.62

Dividend Yield.(%)      0.27

Face Value (RS)          2

 

Wipro hires 12,000 in Q2, robust hiring in the offing in Q3 as well with growth picking up.

 

Of the 12,000 hired, 3,000 were freshers were onboarded. Total employee count at the end of September is 185,243.

 

The company’s gross utilisation level increased to 76.4 percent and voluntary attrition came down to 11 percent. It was 13 percent in Q1 FY21 and 17 percent in the year ago period in September.

 

Thierry Delaporte, CEO, said the company is well-positioned to win large deals going forward as it is becoming more relevant for its clients.

 

Revenue guidance is 1.5-3.5 percent for December quarter. Wipro did not share guidance in Q1 on account of lack of visibility due to pandemic.

 

The IT services segment, which is widely tracked by analysts, witnessed a 3.7 percent quarter-on-quarter growth in revenue at $1,992.4 million in Q2. Non-GAAP constant currency IT Services segment revenue increased by 2 percent QoQ, said Wipro in its BSE filing.

 

Buyback: The board of directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase of up to 23.75 crore equity shares of Rs 2 each (representing 4.16 percent of the total paid-up equity capital) .

 

The buyback price is Rs 400 ($5.41) per equity share payable in cash for an aggregate amount not exceeding Rs 9,500 crore ($1.3 billion).

 

Acquisition of Eximius Design: The company said that it has signed a definitive agreement to acquire Eximius Design, a leading engineering services company with strong expertise in semiconductor, software and systems design.

 

"Eximius enables Wipro to strengthen market leadership in VLSI and systems design services by expanding our market presence and strengthening our technical leadership in the semiconductor ecosystem, to help accelerate silicon innovation for our customers. We are pleased to welcome Eximius' employees and look forward to helping our customers innovate at scale and deliver next-generation connected products, faster," said Harmeet Chauhan, Senior Vice President, Industrial & Engineering Services, Wipro.

 

Management commentary: Commenting on the company's September quarter performance, Thierry Delaporte, CEO and Managing Director, Wipro, said: "We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritized sectors and markets led by vertical solution offerings."

 

Jatin Dalal, Chief Financial Officer, said: "It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2 percent to 19.2 percent in the IT Services segment. Our free cash flows as a percentage of net income for the first half were at 160.7 percent of net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders."