Wipro Q3 results: Net profit at Rs 2,969 cr, board approves interim dividend of Re 1

Top IT services major Wipro on Wednesday reported a flat consolidated net profit at Rs 2,969 crore (attributable to shareholders) for the quarter ending 31 December, 2021 (Q3FY22). The company had posted a net profit of Rs 2,968 crore in the year-ago period.

On a sequential basis, its net profit was up 1.3%, it added.

Its revenue from operations grew 29.6% to Rs 20,313.6 crore, from Rs 15,670 crore in the quarter ended December 2020. Of this, IT services segment revenue was at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY. 

Moreover, the company’s board also declared an interim dividend of Rs 1/- (USD 0.01) per equity share and ADR (50% of an equity share of par value of Rs 2/-), Wipro said in a regulatory filing.

As for the outlook for the quarter ending March 31, 2022, Wipro expects revenue from IT Services business to be 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 IT operating margin was 17.6% versus 21.7% year ago. It said that it has added 7 new customers in the more than $100 million revenue league, in last 12 months.

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."

He also added, "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.”

Further, 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 strong operating cash flow conversion, of 101.3% of net income. 

Further, Wipro also added that the strength of employees for IT services was at 231,671 in the December quarter, an increase of 41,363 employees on a net basis YoY. "We added 10,306 employees during the quarter," it added.

On Wednesday, the company's scrip on BSE closed 0.40% lower at Rs 691.35 apiece. The results were declared after market hours.