Wipro tumbles after Q3 results

13 Jan 2022 , 10:27 AM

On a consolidated basis, the IT major reported a 1.3% rise in net profit to Rs 2,970 crore on a 3.3% rise in revenue from operations to Rs 20,313.6 crore in Q3 December 2021 (Q3 FY22) over Q2 September 2021 (Q2 FY22).

On a year-on-year basis, Wipros net profit fell 0.85% while revenue increased 29.63% in Q3 FY22.

Profit before tax rose by 0.59% quarter on quarter but fell 1.86% year on year to Rs 3778.6 crore in Q3 FY22.

In dollar terms, Wipros gross revenue was $2.7 billion in the third quarter of financial year ended 2022. The IT services segment revenue stood at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY. IT services operating margin for the quarter was at 17.6%, a decrease of 19 basis points quarter on quarter.

Non-GAAP constant currency IT services segment revenue increased by 3% QoQ and 28.5% YoY.

Wipro said it expects revenue from its IT services business to be in the range of $2,692 million to $2,745 million. This translates to a sequential growth of 2% to 4%.

Thierry Delaporte, CEO and MD of Wipro 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, CFO of Wipro 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 strong operating cash flow conversion, of 101.3% of net income.

The IT company reported an attrition rate of 22.7% in Q3 FY22 as against 20.5% in Q2 FY22 and 11% in Q3 FY21.

Meanwhile, the company has declared an interim dividend of Re 1 per share.

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

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