Business News: Wipro hits 52-week high as company revises revenue forecast for Q1 FY22.
Wipro’s share price rose more than 3%, hitting a new 52-week high at the start of trading on April 30 after the IT major revised its first quarter growth guide for fiscal year 2022. following the acquisition of the London-based management consulting firm Capco.
According to CNBC-TV18, Wipro increased its lead IT services revenue growth drive for the June quarter to 8-10 percent sequentially in the range of $ 2.32 million to $ 2.36 million. Previously, it expected its IT services business for the quarter to grow 2-4% in the $ 2.19 million to $ 2.23 million range.
During the March quarter earnings announcement of FY21 on April 15, the IT leader had led a 2-4% quarterly growth in IT services revenue to $ 2,195- $ 2,238 million. The company revised guidance on completing the Capco acquisition although it clarified that the new guidance does not include revenues from its recently announced acquisition of Ampion.
Wipro on March 4, 2021 had informed that it had signed an agreement for the acquisition of Capco, a global management and technology consulting company that provides digital, consulting and technology services to financial institutions in the Americas, Europe and Asia Pacific. The aforementioned acquisition was completed on April 29, 2021.
Wipro’s consolidated net profit stood at Rs 2,972.3 crore during the fourth quarter of fiscal year 21, up 27.78% yoy (YoY), compared to Rs 2,326.1 crore recorded in the same year. last year period. On a quarter-over-quarter (QoQ) basis, profit increased marginally 0.14%, compared to the reported Rs 2,968 crore in the December quarter of FY21.
“Wipro delivered an optimistic QoQ performance in Q4FY21 with CC revenue growth of 3%, above our estimate of 2.6%. Growth was driven by BFSI, ENU, hi-tech and retail. The Operating margin at 21% was above expectations. TCV was robust at $ 1.4 billion and included 12 big deals. We increase FY22 / FY23 EPS by 7.5% / 4.5% taking into account the performance of the quarter. quarter, management guidance and a solid settlement pipeline, “said BoB Capital analysts.
The brokerage firm reiterated its ADD valuation on the meter and raised the target price to Rs 470 based on an unchanged P / E of 18.8x. The target price has now been reached. At 10.15am, the scrip was trading 3.21% higher at Rs 505.65 on the BSE versus a 0.77% drop in the S&P BSE Sensex.