Wipro Q4 results review, IDBI Capital

Wipro Ltd. reported subdued Q4 FY23 results. In the past few quarter the company’s book to bill ratio is higher at ~1.4 times even in current quarter the order book is at $4.1 billion.

However, the reported dollar growth is lower due to higher proportion of discretionary spend in the order book. Going forward, Wipro has guided -3% to -1% de-growth in Q1 FY24E indicating poor conversion led by macro uncertainty.

We expect FY24E revenue growth to be subdued (2.3% YoY) and then reviving in FY25E (up 8.4% YoY). Lower revenue growth has also prompted us to lower margin expectations; hence, we have lowered our earnings per share estimates by 6.7% and 2% for FY24E and FY25E. The stock price could get near term support due to buyback. Bloomberg