Wipro – A glimmer of hope?

Wipro Limited (formerly, Western India Palm Refined Oils Limited) is an Indian multinational corporation that provides information technology, consulting and business process services. Wipro’s capabilities range across cloud computing, cyber security, digital transformation, artificial intelligence, robotics, data analytics, and other technology consulting services to customers in 167 countries. It is the 4th largest Indian company in the global IT services industry behind TCS, Infosys and HCL Technologies.

Quarterly Earnings Walkthrough

Wipro posted a consolidated net profit of ₹3,065 crore that is up by 3% Quarter-on-Quarter and 15% Year-on-Year. Consolidated revenue was reported at ₹23,229 crore which has risen by 3% QoQ and 14% YoY. Considering the dollar basis, the revenue from IT services segment has gained by 6% YoY to $2,803 million, whereas non-GAAP constant currency growth was reported at 0.6% QoQ and 10% YoY. The IT services operating margin for the December quarter has risen by 120 bps QoQ to 16%.

Wipro’s total bookings have risen by 26% YoY and large deal bookings have spiked up by 69% YoY. The company’s attrition rate has moderated for the fourth time consecutively in Q3 at 21%.

Wipro reduced its workforce by 435 sequentially taking the total employee headcount to 258,744 as of December 31, 2022.

Word from the Board

Thierry Delaporte, the CEO and MD of Wipro said that “I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row”.

Technical Analysis

Wipro Weekly Candlestick Chart on Sharekhan’s TradeTiger

Wipro stock price receives support along the 61.8% retracement level. The stock is making a continuation pattern along the 200-day exponential moving average, and the price is below it, hence investors may still enter into this stock as the price is severely oversold. MFI on weekly chart is at 50 points however the price has been in the same range since September 2022. If the price makes a close above the moving average, we might see a break in the continuation pattern and the stock may turn bullish.

Disclaimer: We do not endorse or encourage you to take trades or investment decisions based upon our posts/research, all of your trading and investment activities are your own and should be taken through consultation with reputed financial advisors. The analysis posted on this website has been created by involving multiple mediums which are present over the Internet.

Leave a Reply