For 1QFY2018 Wipro announced a good set of numbers. The IT services sales came in at US$1,971.7mn v/s. US$1,950mn expected, a qoq growth of 0.9%, while in Constant Currency (CC) terms qoq growth of 0.3%.On operating front, the EBIT margins came in at 16.2% v/s. 14.3% in 4QFY2017.This was against the expectations of 13.0%. The net profit during the quarter was ` 2,083cr v/s. `1,659cr expected, a qoq dip of 8.1%. For 2QFY2018, the company expects revenues from its IT Services business to US$1,962-2,001mn, growth in the range of (0.5)-1.5% qoq. The Board of Directors approved a buyback proposal for purchase by the company of up to 343.75mn equity shares of ?2 each (representing 7.1% of total equity capital). The buyback price will be ?320/share payable in cash for an aggregate amount not exceeding ?11,000cr.We maintain our neutral rating.

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