will government's massive surge in investment ... - Myiris.com

Apr-Jun 2013 Earnings Preview
Wipro
Rating
BUY
Price (Rs) 356
Target Price (Rs) 410
M/Cap (Rs bn) 875.6
Shares o/s (m) 2,463.0
Key Figures (Rs m)
Y/e March FY13 FY14E FY15E
Net Sales 374,256 411,491 452,524
EBITDA 78,181 82,704 89,536
Margin (%) 20.9 20.1 19.8
PAT 61,684 65,765 70,663
EPS (Rs) 25.0 26.7 28.7
Growth (%) 17.1 6.6 7.4
RoE (%) 21.7 21.5 20.1
PE (x) 14.2 13.3 12.4
P / BV (x) 3.1 2.7 2.3
EV / E (x) 10.1 9.3 8.1
We expect Wipro to report IT Services revenue growth of 0.1% in USD terms to
US$1,587m, in line with their guidance of -0.6% to 1.6% QoQ growth. We expect
volumes to grow by 0.7% sequentially, with realization decline of 0.1% QoQ. EBITDA
margin is expected to expand by 12bps despite currency depreciation. We are
expecting the management commentary to be more positive. We expect Wipro to
guide for 2-4% QoQ growth for Q2FY14.
Quarterly Table (Rs m)
Y/e March
Q1
FY14E
Q4
FY13
QoQ gr.
(%)
Q1
FY13
12M
FY14E
12M
FY13
YoY gr.
(%)
Net Sales 98,960 96,078 3.0 104,832 411,491 374,256 9.9
EBITDA 20,386 19,681 3.6 19,728 82,704 78,181 5.8
Margin (%) 20.6 20.5 12 bps 18.8 20.1 20.9 (79)bps
Reported PAT 17,681 17,373 1.8 15,802 65,765 61,684 6.6
PAT (Excl. Ex Items) 17,681 17,373 1.8 15,802 65,765 61,684 6.6
Operating Metrics
Volume (persons month) 176,107 174,883 0.7 171,851 744,785 689,616 8.0
Pricing (US$ / Hr) 38.8 38.8 (0.1) 38.0 39.2 38.8 1.0
Currency (USDINR) 56 54 2.9 55 54 55 (0.9)
SW. Devp. (% of s ales) 69.5 69.7 (24)bps 69.5 70.2 69.6 51 bps
SG&A (% of Sales) 9.9 9.8 13 bps 11.7 9.7 9.5 28 bps
July 8, 2013 124