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Wipro Q3 results: Net profit rises 21% to Rs 2,967 crore on strong order book

BusinessToday.In     January 13, 2021

IT major Wipro closed December quarter with strong top and bottom line growth on the back of strong performance on order booking and broad-based growth across all service lines and business units. The board of directors of the company approved an interim dividend of Re 1 per equity share of par value Rs 2 each, which will be paid on or before February 02, 2021.

Wipro reported 20.8 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 2,966.70 crore for the third quarter ended December 31, 2020, compared to Rs 2,455.80 crore in the same period last year, the company said in a regulatory filing on Wednesday. On the sequential basis, profit rose 20.3 per cent from Rs 2,465.60 crore in September quarter of the current fiscal.

The Bengaluru-based IT major reported consolidated revenue of Rs 15,670 crore, up 1.3 per cent from Rs 15,470.5 crore in December quarter of 2019. On a quarterly basis, the gross revenue increased by 3.67 per cent.

For October-December quarter, the company's operating profit jumped by 24.2 per cent to Rs 3,381.3 crore, from Rs 2,723.3 crore in the year-ago period.

IT services revenue grew by 3.8 per cent to Rs 15,333.1 crore as compared to Rs 14,768.10 crore on QoQ. In dollar terms, IT services segment revenue was at $2,071 million, an increase of 3.7 per cent QoQ.

The company's dollar revenue grew by 3.9 per cent versus 3.7 per cent on sequential basis. The company said its dollar revenue growth was the highest in 36 quarters.

Going forward, Wipro expects revenue from IT services business to be in the range of $2,102 million to $2,143 million in March quarter. This translates to a sequential growth of 1.5 per cent to 3.5 per cent.

Commenting on Q3 earnings, 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 per cent 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 organisation structure and are stabilising quickly."

During the quarter under review, Wipro hired about 14,000 employees which includes onboarding of more than 2,900 freshers.

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."

Ahead of Q3 earnings, shares of Wipro ended Wednesday's trade at Rs 458.75, up 0.23 per cent, against previous closing price of Rs 457.70 on the BSE.

Also Read: Infosys Q3 results: Profit rises 17% to Rs 5,197 crore, raises FY21 revenue guidance

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