Wipro Q3FY2012 results highlights: Revenues in-line, but margins below expectations
- IT services revenues were up 2.2% QoQ at $1505 million inline with the company guidance of $1500 - 1530 million and our expectation of $1509.5 million. The constant currency growth was 4.5% which was higher than the guided growth. Volume growth for IT services was 1.8%.
- Wipro Consolidated net profit marginally up by 10.43% to Rs1456.4 crore for the quarter ended December 31, 2011
- Total revenues grew 8.9% QoQ to Rs9808.8 crore lower than our expectation of Rs 9864.3 crore.
- EBIT margins for the quarter improved by 110bps QoQ to 17.6% which was below our expectation of 19.4%. EBIT margins for IT services business was up 80bps to 20.8% hoever were below our expectation of 22.5%.
- Net profit grew 12% QoQ to Rs1456.4 crore below our expectation of Rs1564 crore.
- For Q4FY2012, Wipro has guided IT revenues at $1520 - 1550 million a QoQ growth of 1 - 3%.
- During the quarter company has added 5004 employees, at the end of Q3FY12 total employees in IT services stood at 136,734.
- The company added 39 new customers for the quarter.
- Currently we have Hold rating with target price of Rs411.
| |
Q3FY12A |
Q2FY12A |
QoQ% |
Q3FY11A |
YoY% |
Q3FY12E |
Var. (%) |
| IT Revenues ($ mln) |
1505 |
1472.5 |
2.2 |
1343.8 |
12 |
1509.5 |
-0.3 |
| Revenues (Rs cr) |
9808.8 |
9007 |
8.9 |
7820.2 |
25.4 |
9864.3 |
-0.6 |
| EBIT (Rs cr) |
1723.9 |
1487.8 |
15.9 |
1435.7 |
20.1 |
1914.1 |
-9.9 |
| Net Profit (Rs cr) |
1456.4 |
1300.9 |
12 |
1318.8 |
10.4 |
1564 |
-6.9 |
| EPS (Rs) |
5.9 |
5.3 |
|
5.4 |
|
6.4 |
|
| EBIT (%) |
17.6 |
16.5 |
|
18.4 |
|
19.4 |
|
| NPM (%) |
14.8 |
14.4 |
|
16.9 |
|
15.9 |
|
At 10.12 am, Wipro was trading at Rs420, up by 3.93%, with a volume of 1.80 lakh shares on the BSE.