The disconnect between order flows and execution is baffling; one should wait for performance to catch up before turning constructive
One of the key growth strategies of Wipro has been its inorganic moves to acquire end-to-end capabilities in consulting, digital, cloud, and IT transformation services (Illustration by Suneesh K.)
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Highlights Revenue performance tepid, guidance muted Uptick in margin, expects it to sustain Order flow robust, disconnect between ordering and execution Attrition falling, net hiring negative Macro slowdown showing up in multiple pockets, earnings trajectory to remain uninspiring Wipro (CMP: Rs 394, Market Cap: Rs 216,131 crore) has delivered its Q3 performance wherein revenues and guidance were tepid although margin improvement and order inflows surprised on the upside. We are unable to solve the puzzle of higher bookings not translating into similar growth in revenues….
