Wipro Q4 profit jumps 27.7% to Rs 2,972.3 cr; revenue up 3.4%

Wipro on Wednesday reported a 27.7 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 2,972.3 crore during January-March quarter. Sequentially, the company's net profit declined 0.8 per cent from Rs 2,997.8 crore in December quarter.

The company's revenue climbed 3.4 per cent YoY to Rs 16,245.4 crore in the quarter under review as compared to Rs 15,711 crore in the same period last year. On a quarter-on-quarter basis, revenue rose 3.7 per cent from Rs 15,670 crore in October-December quarter.

During fiscal year 2020-21, the company's net profit rose 11 per cent YoY to Rs 10,796.4 crore, while revenue grew 1.5 per cent to Rs 61,943 crore.

Wipro's revenue from IT services segment increased 3.9 per cent QoQ and 3.8 per cent YoY to $2,152.4 million during the March quarter, while operating margin for IT services expanded 344 basis points (bps) to 21 per cent.

"We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. Led by disciplined execution, we generated strong operating cash flows at 136.7 per cent of our net income for the full year, Wipro CFO Jatin Dalal said.

The company expects revenue from its IT services business to grow 2-4 per cent sequentially to $2,195-$2,238 million during the April-June quarter.

Wipro said it continued its momentum in winning large deals with its customers and continues to see increasing traction in digital oriented and other strategic deals.

"We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates," Wipro CEO and Managing Director Thierry Delaporte said.

The company's employee count stood at 1,97,712 as of March 31, while attrition rate was at 12.1 per cent.

Shares of Wipro closed 2.95 per cent higher at Rs 431 on the BSE on Thursday.

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