Wipro's (WPRO) Q4FY21 IT service revenue growth of 3% QoQ in CC was in-line with our forecast. IT services EBIT margin of 21%, -65bps QoQ was a beat to our forecast. Consolidated EBIT margin of 20.5%, -75bps QoQ and EPS of Rs5.4, +3.6%/32% QoQ/YoY was also beat to our forecast. Q4FY21 saw another quarter of strong large deal TCV of USD 1.4 billion (including one deal with potential of USD 1 billion) following USD 1.2 billion in Q3, said IDBI Capital in its report.

Further, along with smaller deals the total TCV of USD 7.1 billion for H2FY21 saw a 33% YoY growth. Q1FY22 guidance of IT services revenue growth of +2% to +4% QoQ in CC is a beat to our expectation.

"We increase our FY22/23 revenue (USD) by 2.4%/2.9% and EPS by 6.5%/6.2%. We increase our TP to Rs 485 (vs. Rs 415 earlier), now based on 22x FY23E (20x earlier) and upgrade the stock to ACCUMULATE vs. REDUCE earlier," it added.

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