Wipro Ltd.

Overview Key strengths Key risks Healthy deal wins, strategic investments, and large recurring revenue base provide good earnings visibility. Weaker scale and EBITDA margins than that of peers at a similar rating level. Cost advantage on offshore resources and global service delivery support healthy margins. Margin pressure from high attrition, wage inflation, and investments to scale up digital capabilities. Strong operating cash flows with low capital spending requirements provide sufficient headroom for discretionary spending. Demand for information technology (IT) software services is likely to remain resilient over this period, with spending focused on digital transformation and cloud-related services. Wipro?s strategic investments over the past few years position it favorably to cater to this demand. For instance, The Capital Markets Company

...Wipro Ltd.'s strategic investments should bolster growth over the next two years. Demand for information technology (IT) software services is likely to remain resilient over this period, with spending focused on digital transformation and cloud-related services. Wipro's strategic investments over the past few years position it favorably to cater to this demand. For instance, The Capital Markets Company (UK) Ltd. (CAPCO), Wipro's largest acquisition to date, reported strong growth in the fiscal year ended March 31, 2022, (fiscal 2022). with over 60 synergy wins with Wipro during the year. We expect Wipro to similarly benefit from cross-selling opportunities and synergies with its recent acquisition of Convergence Acceleration Solutions LLC (consulting and program management, with focus on the communications vertical) and Rizing (SAP consulting)....

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