Wipro Q3 profit rises 21% YoY, dollar revenue growth highest in 36 quarters


Software services company Wipro on January 13 reported a consolidated profit of Rs 2,966.70 crore for the October-December quarter, rising 20.8 percent compared to Rs 2,455.80 crore in the corresponding quarter of the previous year.

Consolidated revenue for the quarter stood at Rs 15,670 crore, which was higher by 1.3 percent compared to Rs 15,470.50 crore reported in the Q3FY20.

The company’s dollar revenue growth came at 3.9 percent versus 3.7 percent QoQ. The company said its dollar revenue growth was the highest in 36 quarters.

Wipro’s CC revenue growth for the quarter came at 3.4 percent, beating the CNBC-TV18 poll of 2.6 percent.

IT services’ revenue grew by 3.8 percent to Rs 15,333.1 crore versus Rs 14,768.1 crore QoQ. IT services EBIT grew 17.1 percent to Rs 3,320.4 crore versus Rs 2,835.1 crore QoQ.

IT services EBIT margin came at 21.7 percent versus 19.2 percent QoQ. EBIT margin came as the highest in the last 22 quarters.

IT services dollar revenue grew 3.7 percent to $2,071 million versus $1,992.4 million QoQ.

Wipro expects its dollar revenue in the range of $2,102-2,143 million for the March quarter, a growth of 1.5-3.5 percent over the December quarter.

Commenting on the quarterly performance, Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a second consecutive quarter of strong performance on order booking, revenue and margins. Five of our sectors grew over 4 percent sequentially.”

“We closed our largest ever deal win in Continental Europe. The demand environment is steadily improving, especially for digital transformation, digital operations, and cloud services. I am also pleased to share with you that we have moved into our new organization structure and are stabilizing quickly.”

Jatin Dalal, Chief Financial Officer of the company said, “Our margins are now at a 22 quarters high. The expansion was led by improved revenue growth trajectory and excellence in operations with several metrics at an all-time high. Our operating cash flows grew by 45 percent YoY with a significant improvement in outstanding receivables.”

The company has announced an interim dividend of Rs 1 per equity share of par value Rs 2 each to the members of the company as of January 25, 2021, being the record date. The payment of the interim dividend will be made on or before February 2, 2021, the company said.

Wipro shares beat the Nifty IT index in terms of returns, rising 23.2 percent in the quarter ended December and a whopping 57.1 percent in the year 2020. The Nifty IT index gained 21.55 percent and 55 percent in the same periods.

The company closed its share buyback of Rs 9,500 crore on January 11. It had decided to buy back 23.75 crore equity shares at a price of Rs 400 per share from shareholders.

News Source: Moneycontrol

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