Wipro Ltd Q3 net flat at Rs2,969cr as higher employee cost and sub-contracting expenses pinch

12 Jan 2022 , 08:27 PM

Wipro Ltd reported 29.63% growth in total revenues for the Dec-21 quarter on consolidated basis at Rs20,314cr. On a sequential basis, the revenues were up by 3.29%.

During the December 2021 quarter, the Americas accounted for 58% of the total revenues in IT services while Europe for 30% while the balance 12% was accounted for by the APMEA region.

Operating profits grew by just about 3.18% yoy at Rs3,442cr as the manpower costs and the sharply higher sub-contracting expenses pinched the bottom line of the company.

As a result, the operating margins fell very sharply from 21.29% in the Dec-20 quarter to 16.95% in the Dec-21 quarter. This was largely on account of static operating profits amidst sharply higher sales revenues. Operating profits were up just about 1.3% on sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up just 0.03% at Rs2,969cr on the back of higher operating and non-operating costs in the quarter. The operating profit pressures got transmitted to the PAT margins also. PAT margins narrowed from 18.94% in the Dec-20 quarter to 14.62% in the Dec-21 quarter. The board has declared an interim dividend of Rs.1 per share.

Financial highlights for Dec-21 compared yoy and sequentially

	Wipro Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 20,314	₹ 15,670	29.63%	₹ 19,667	3.29%
Operating Profit (Rs cr)	₹ 3,442	₹ 3,336	3.18%	₹ 3,398	1.32%
Net Profit (Rs cr)	₹ 2,969	₹ 2,968	0.03%	₹ 2,931	1.31%
Diluted EPS (Rs)	₹ 5.42	₹ 5.17		₹ 5.35
OPM	16.95%	21.29%		17.28%
Net Margins	14.62%	18.94%		14.90%