Wipro raises FY22 revenue target in IT services biz to $2,692-$2,745 million; Q3 PAT rises sequentially

13 Jan 2022 , 02:59 PM

Wipro missed estimates in the third quarter ending December 2021 for the fiscal year FY22. The company’s consolidated net profit that was attributable to owners stood at Rs,2969cr in Q3FY22, broadly flat compared to a profit of Rs2,968cr in the same quarter a year ago. On a sequential basis, the latest PAT rises from Rs2,930.7cr of Q2FY22.

Consolidated revenue stood at Rs20,313.6cr in the quarter under review, rising from Rs15,670cr of Q3FY21 and Rs19,667.4cr of Q2FY22.

In dollar terms, IT Services Segment Revenue was at $2,639.7 million in Q3FY22, an increase of 2.3% QoQ and 27.5% YoY. Non-GAAP constant currency IT Services Segment Revenue increased by 3.0% QoQ and 28.5% YoY.

IT Services Operating Margin for the quarter was at 17.6%, a decrease of 19 bps QoQ, while Operating Cash Flow was at Rs30.1 billion ($404.2 million1), which is 101.3% of Net Income.

The company’s closing strength of employees for IT Services was at 231,671, an increase of 41,363 employees on a net basis YoY. It added 10,306 employees during the quarter.

Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly.”

Jatin Dalal, Chief Financial Officer said, “We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in a strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of Rs1 per equity share.”

For FY22, Wipro raised its revenue target in the IT Services business in the range of $2,692 million to $2,745 million. This translates to a sequential growth of 2.0% to 4.0%.

The company’s board announced an interim dividend of Rs1 per equity share of par value Rs2 each to the Members of the Company as of January 24, 2022, being the Record Date. The payment of Interim Dividend
will be made on or before February 5, 2022.

At around 2.52 pm, Wipro was trading at Rs650.70 per piece nosediving by Rs40.65 or 5.9% on Sensex. The stock was near the day’s high of Rs648 per piece.