Tech stock under pressure: Wipro Limited (NYSE: WIT)

Free $100 Forex No-Deposit Bonus

Wipro Limited (NYSE: WIT) stock fell over 3% on January 15th, 2020 pre market session (Source: Google finance) as the company in the third quarter of FY 20 has reported 2.2% fall in the net income to 24.6 billion Indian rupees or $344 million. However, earnings per share for the third quarter were 4.30 rupees or $0.06 up 3.2% from the prior year. Gross revenue was up 2.7% to 154.7 billion rupees or $2.2 billion from the prior year. On a YTD basis, the company posted the growth at 4.3% in constant currency terms. The company had expanded operating margins by 0.3% due to a favorable movement in the currency. In financial services, the company has experienced a slowdown in the growth rate due to continued softness driven by macroeconomic environment. In consumer, the company posted the growth of 12.1% year-over-year constant currency in the third quarter. WIT saw recovery in manufacturing, and is encouraged by the order book and pipeline. Health saw seasonal uptick in HPS as Q3 has open enrollment period, while the technology business was affected both by furloughs and slowdown in spend in the semiconductor verticals.

Moreover, the cash conversion remained very strong. The operating cash flow was 124% of net income, and free cash flow was 101% of the net income. The forex realizations remained very strong. Its realization rate for quarter three was INR72.09 compared to INR71.56 for quarter two. The company has generated the total cash on the balance sheet of INR4.9 billion gross and INR3.6 billion net.

For the fourth-quarter, the company expects revenue from its IT Services business to be in the range of $2.095 billion to $2.137 billion. This reflects the sequential growth to be in the range of 0.0% to 2.0%.

Additionally, the company has declared an interim dividend of Rs 1 ($0.014) per equity share/ADS

Meanwhile, during the third quarter, WIT had bagged a multi-year managed IT services contract from a leading airport in the Middle East in which Wipro will leverage its strong domain expertise, digital transformation & innovation capabilities and integrated service delivery model to transform the airport’s IT operations. The company has also secured a contract from one of the largest US-based integrated healthcare delivery systems to increase the enterprise security and operations, which will leverage Wipro’s Security Intelligence as a Service (SIaaS) managed services

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.