Wipro posts strong set of numbers in Oct-Dec quarter

Wipro has posted a strong set of numbers for the October-December quarter. The company’s revenues during the period stood at Rs 15,670 crore while net profit was at Rs 2,970 crore.

The operating margin expanded sequentially by 243 bps to 21.7 per cent, a significant growth in the last 22 quarters. The company surpassed all market estimations and gave a revenue guidance of 1.5 per cent-3.5 per cent for the January-March quarter.

Talking about the same, Wipro CEO and MD Thierry Delaporte said, “Optimisation of operations and sub-contracting has really worked for us. We have also closed a $700-million five-year deal with Metro AG, extendable to four more years with a scope of touching a billion dollars, during this quarter.”

“We have also secured a multi-million dollar, multi-year deal with a leading US-based mortgage lender,” he added.

The management also announced an interim dividend of Rs 1 per equity share with the record date of January 25. The company has also closed a Rs 9,500-share buyback on January 11.

Wipro has seen growth across all geographies, with US driving the most with 57.6 per cent contribution to the revenue. Five out of the seven business sectors have grown sequentially by over 4 per cent for the company which has further added to the strong numbers. “Our operating cash flows grew 45 per cent y-o-y with a significant improvement in outstanding receivables,” Wipro CFO Jatin Dalal added.

Digital now contributes to over 46 per cent of the company’s revenue, which includes cloud, data analytics, AI and digital platforms. BFSI continues to be a large contributing business segment with 30.5 per cent of the revenue. With new energy, telecom, media and manufacturing deals in the pipeline, the company has given a revenue estimate of $2.1-2.15 billion for Q4FY21.

Recently, Wipro extended work from home for its employees till April 2021, with over 98 per cent of the employees continuing to work remotely. The management has maintained employee utilisation 86 per cent with no furloughs. Localised hiring and remote workforce will continue to be the trend for the company till the end of fiscal 2021.