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videos | IST

Wipro Q4FY21 preview: Focus on Capco acquisition, wage hike

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Wipro will come out with its Q4FY21 numbers today. The street expects a third consecutive quarter of good growth and dollar revenue growth is seen up 3.9 percent on a sequential basis.

Wipro will come out with its Q4FY21 numbers today. The street expects a third consecutive quarter of good growth and dollar revenue growth is seen up 3.9 percent on a sequential basis. In constant currency terms, there should be a growth of 3-3.2 percent which is at the upper end of the company’s guided band.
Margins will be under pressure this time sequentially owning to wage hike impact which kicks in this quarter.
The cue will be the next quarter’s guidance. So for Q1FY22, the street is working with 1-3 percent revenue growth. There will be some booster that comes in from the metro deal which was signed.
What to focus on?
  • Deal wins because last quarter was the first time the company started giving some quantitative numbers on this.
  • When do they get back to industry-level growth?
  • The big Capco acquisition: The BFSI acquisition a couple of months ago is expected to be margin dilutive.
  • The commentary on wage hike impact as well as on-demand will be crucial.
    Watch the accompanying video for more details.