Home / Companies / Company Results /  Wipro Q3 net profit flat at 2,969 cr, declares interim dividend
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Information Technology company Wipro Ltd today reported net profit of 2,969 crore for the December quarter (Q3FY22). The profit was almost flat when compared with 2,968 crore reported in the year-ago period.

Wipro had reported a net profit of 2,930 crore in the previous September quarter, which also translates to a flat increase in percentage points.

The company's board has also declared an interim dividend of 1 per equity share.

Its revenue from operations, meanwhile, rose 29.6% to 20,313 crore as compared to 15,670 crore in the last year period.

Commenting on the results, Thierry Delaporte, Wipro CEO and MD 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."

On the outlook for Q4, Wipro said it expects revenue from IT services business to be in the range of $2,692 million to $2,745 million, which translates to a sequential growth of 2% to 4%.

On Wednesday, Wipro scrip traded lower by 0.45% to settle at 691 apiece on NSE. In the last one year, the scrip has gained by 49.62% as against a rise of 24.82% in the Nifty IT index.

"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. Delaporte added.

Wipro further said it continued the momentum in winning large deals with its customers in the reporting quarter.

Segment wise, revenue from IT services business came in at $2,639.7 million, an increase of 2.3% quarter-on-quarter and 27.5% year-on-year.

In constant currency, IT services segment revenue increased by 3% when compared with previous quarter and 28.5% year-on-year

Wipro has an operating cash flow of $404.2 million, which is about 101.3% of net income.

“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. Additionally, we have declared an interim dividend of 1 per equity share," Jatin Dalal, CFO of the company said.

"Wipro Ltd quarterly earnings are in-line with street expectation including future CC guidance. Revenues wise Wipro missed street expectations and margins were in-line as expected while net profit was almost flat when compared with 2,968 crore reported in the year-ago period," said Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd.

"As history company continued to pay dividend and approved an interim of 1 rupee per share. On the revenue guidance and outlook for Q4, Wipro expects revenue from IT segment would sequentially grow of 2% to 4% as expected by street. Order bookings continued to be robust by adding 7 new customers in the more than $100 mn revenue league, in the last 12 months. Based on the results we expect stock would react marginally down from today closing of 691 and give opportunity to accumulate in the range of 660-675. We are overall optimistic on the stocks with medium to long term horizon," Tapse added.

Wipro has added 10,306 employees in Q3, taking the total strength of employees for IT services to 231,671, an increase of 41,363 employees on a net basis year-on-year (YoY).

The attrition rose to 22.7% (voluntary TTM) on a trailing 12 month basis from 20.5% in the second quarter (QoQ).

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