Wipro Q3 PAT rises 20% QoQ to Rs 2,968 cr

The IT major reported 20.37% rise in consolidated net profit to Rs 2,968 crore on a 3.68% increase in revenue to Rs 15,670 crore in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY21).

The company's consolidated net profit has grown by 20.85% and revenue has risen by 1.29% in Q3 FY21 over Q3 FY20.

Profit before tax (PBT) in Q3 FY21 stood at Rs 3850.4 crore, up by 20% from Rs 3,207.30 crore in Q2 FY21. Total tax expense during the third quarter increased 18% to Rs 852.6 crore in Q3 December 2020.

Wipro's IT services segment revenue came at $2,071 million in Q3 FY21, a sequential growth of 3.9%. The company's non-GAAP constant currency IT services segment revenue increased by 3.4% quarter on quarter. The company said its IT services operating margin grew by 243 basis points quarter on quarter to 21.7% in Q3 FY21.

Wipro expects revenue from its IT services business to be in the range of $2,102 million to $2,143 million in Q4 March 2021, a sequential growth of 1.5% to 3.5%.

Commenting on company's Q3 performance, Thierry Delaporte, CEO and MD said, Wipro has delivered a second consecutive quarter of strong performance on order booking, revenue and margins. Five of our sectors grew over 4% 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, CFO of Wipro said, Our margins are now at 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% YoY with a significant improvement in outstanding receivables.

The company added 89 new customers in the quarter ending 31 December 2020. The IT major's attrition rate (on TTM basis) stood at 11% in Q3 FY21.

Meanwhile, the company has declared a dividend of Re 1 per share with a record date of 25 January 2021.

Wipro is a global information technology, consulting and business process services company.

Shares of Wipro rose 0.23% to Rs 458.75 on Wednesday.

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