Wipro Ltd Q3 net profit up 21.71% yoy at Rs2,998cr, beats estimates

Wipro beat street estimates on top line and bottom line as it reported 1.29% growth in Dec-20 quarter top line revenues yoy at Rs15,670cr.

Jan 13, 2021 10:01 IST India Infoline News Service

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Wipro Ltd beat street estimates on top line and bottom line as it reported 1.29% growth in Dec-20 quarter top line revenues yoy at Rs15,670cr. The new CEO of Wipro confirmed that robust client acquisition and a focus on digital had helped the company keep growth intact. On a sequential basis, the revenues were up 3.8%.


For the Dec-20 quarter, the operating profits were sharply up by 25.7% at Rs3,336cr. This was on the back better cost management during the quarter despite a rise in manpower outlays. Robust demand from key markets also helped. As a result, the operating margin or OPM expanded sharply from 17.16% in the Dec-19 quarter to 21.29% in Dec-20 quarter.


Profit after tax (PAT) for the Dec-20 quarter was up 21.71% at Rs2,998cr on the back of favorable cost management. This resulted in the PAT margins for the Dec-20 quarter expanding from 15.92% in Dec-19 quarter to 19.13% in the Dec-20 quarter.


Financial highlights for Dec-20 compared yoy and sequentially


Wipro Ltd
Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 15,670 ₹ 15,471 1.29% ₹ 15,097 3.80%
Operating Profit (Rs cr) ₹ 3,336 ₹ 2,654 25.70% ₹ 2,779 20.04%
Net Profit (Rs cr) ₹ 2,998 ₹ 2,463 21.71% ₹ 2,484 20.66%
Diluted EPS (Rs) ₹ 5.17 ₹ 4.30 ₹ 4.32
OPM 21.29% 17.16% 18.41%
Net Margins 19.13% 15.92% 16.46%


Key takeaways from the Dec-20 quarter results

  • Wipro had consistently fallen behind in the net operating margin game. On a comparable, the OPM at 21.3% is still below what the likes of Infosys and TCS announce but the sharp improvement is signalling a good trajectory.


  • Wipro does provide guidance and that is also robust. If you look at the Q4 guidance provided by Wipro it indicates a sequential growth in the range of 1.5% to 3.5% in top line revenues. Margins are likely to stabilize around this range.


  • Wipro has seen a sharp improvement in the demand picture in digital transformation, digital operation and cloud services. Five of their key verticals have shown sequential growth of above 4% which is considered a healthy sign.

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