Wipro Q4 profit jumps 28% YoY to Rs 2,972 crore; revenue rises 3.4%

Wipro on Thursday reported a consolidated net profit of Rs 2,972.3 crore for March quarter of financial year 2020-21 (Q4FY21), up 27.78 per cent year-on-year (YoY), as against Rs 2,326.1 crore posted in the same period last year. The company announced Q4FY21 numbers post market hours.

On a quarter-on quarter (QoQ) basis, the profit increased marginally by 0.14 per cent, compared to Rs 2,968 crore reported in the December quarter of FY21. 

Its consolidated revenue from operations, meanwhile, climbed 3.4 per cent YoY to Rs 16,245.4 crore in the recently concluded quarter. This stood at Rs 15,711 crore in the previous corresponding period. Sequentially, the figure rose 3.67 per cent - from Rs 15,670 crore in the December quarter. 

"We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates," Thierry Delaporte, CEO and Managing Director said in a statement.

Wipro's March quarter results largely met analysts' estimates on both profit and revenue front. Brokerage Phillip Capital had forecasted net profit to rise by 24.9 per cent YoY to Rs 2,904.5 crore but fall 2.1 per cent QoQ. Meanwhile, those at Axis Securities projected a 30.1 per cent YoY and 3.3 per cent QoQ rise in net profit to Rs 3,065 crore, one of the most bullish predictions among brokerages. READ MORE

Wipro reported a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis the firm increased margins by 220 bps with a consistent improvement in operating metrics.

"Led by disciplined execution, we generated strong operating cash flows at 136.7 per cent of our net income for the full year. We successfully completed the share buyback program returning $1.3 billion to our shareholders," said Jatin Dalal, Chief Financial Officer, Wipro.

Segment-wise revenue
The company's revenue from IT services stood at Rs 16,334 crore as against Rs 15,810.3 crore posted in the March quarter last year and Rs 15,726.6 crore in the preceding quarter of FY21. Meanwhile, in dollar terms, IT Services revenue came in at $2,152.4 million, an increase of 3.9 per cent QoQ and 3.8 per cent YoY.

The firm's IT services Ebit (earnings before interest and tax) grew 29.47 per cent YoY to Rs 3,417 crore from Rs 2,639.1 crore at the end of March quarter. The figure was up 1 per cent as against Rs 3,382.8 crore in Q3FY21. Besides, the operating margin for IT services for the quarter under review was at 21 per cent, an expansion of 344 bps YoY.

Going-forward, Wipro expects revenue from its IT services business to be in the range of $2,195-$2,238 million, translating into a sequential growth of 2-4 per cent. This does not include revenue from our recently announced acquisitions of Capco and Ampion, the company clarified.

Ahead of the results, the shares of the firm ended 2.95 per cent higher at Rs 431 on the BSE.