Wipro Q3 profit grows 21% YoY to Rs 2,968 crore, margins expand 243 bps QoQ

The company declared dividend of Rs 1 per share

Bengaluru-based IT firm Wipro on Wednesday clocked a 20.85 per cent year-on-year (YoY) growth in net profit at Rs 2,968 crore for the December quarter of FY21 (Q3FY21). It had reported a profit of Rs 2,455.9 crore in the same quarter last year. Sequentially, PAT rose 20.37 per cent relative to Rs 2,465.7 crore posted in Q2FY21.

Its revenue came in at Rs 15,670 crore, up 1.28 per cent from Rs 15,470.5 crore logged in Q3FY20. On a quarterly basis, the income improved 3.67 per cent.

The IT services revenue came in at Rs 15,333.1 crore. In dollar revenue terms, it grew 3.9 per cent quarter-on-quarter (QoQ) to $2,071 million. The company expects revenue from its IT Services business to grow 1.5-3.5 per cent in Q4FY21 to $2,102-$2,143 million.

EBIT margins IT services, which was expected to decline owing to wage hike, came in at 21.7 per cent, an expansion of 243 bps QoQ and 329 bps YoY.

The numbers were largely in line with Street estimates that had expected up to 2 per cent YoY increase in revenue. Analysts at Sharekhan had projected the revenue, in rupee terms, to rise to Rs 15,710 crore, up 1.6 per cent YoY (3.7 per cent QoQ), led by the ramp-up of large deals and marginal revenue contribution from full quarter consolidation of an acquisition.

"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," said Thierry Delaporte, CEO and Managing Director.

The company announced interim dividend of Re 1 per equity share of par value Rs 2 each. The record data for the same has bet set as January 24, 2021.

The stock hit a fresh record high of Rs 467 apiece earlier today, but settled 0.23 per cent higher on the BSE at Rs 458.75.