Q3FY21: Wipro's PAT up 20% yoy to Rs2,967cr; Margin at 22-quarters high; Expects revenue growth of 1.5-3.5% from IT services biz

IT Services Operating Margin for the quarter was at 21.7%, an expansion of 243 bps QoQ and 329 bps YoY.

January 13, 2021 5:06 IST India Infoline News Service

IT-giant Wipro's both bottom-line and top-line front increased during December 2020 (Q3FY21) quarter. Wipro registered a consolidated net profit of Rs2,966.70cr in the latest quarter compared a profit of Rs2,455.80cr in the corresponding period of the previous year, registering a growth of 20.8% yoy.

Consolidated revenue increased by 1.3% to Rs15,670cr in the quarter under review against Rs15,470.50cr a year ago same period.

Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a second consecutive quarter of strong performance on order booking, revenue and margins. Five of our sectors grew over 4% sequentially. We closed our largest ever deal win in Continental Europe. The demand environment is steadily improving, especially for digital transformation, digital operations, and cloud services. I am also pleased to share with you that we have moved into our new organization structure and are stabilizing quickly.”

Key highlights of the Q3FY21 result were:
  • IT Services Segment Revenue was at $2,071 million, a sequential growth of 3.9%.
  • Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.4% QoQ.
  • IT Services Operating Margin for the quarter was at 21.7%, an expansion of 243 bps QoQ and 329 bps YoY.
  • Earnings Per Share for the quarter was at Rs5.21 ($0.071), an increase of 20.7% YoY.
  • Operating Cash Flow was at Rs44.3 billion ($607 million ), which is 149.4% of Net Income.
  • Wipro declared an interim dividend of ₹1 ($0.0141 ) per equity share/ADS.

Jatin Dalal, Chief Financial Officer said, “Our margins are now at a 22 quarters high. The expansion was led by improved revenue growth trajectory and excellence in operations with several metrics at an all-time high. Our Operating Cash Flows grew by 45% YoY with a significant improvement in outstanding receivables.”

Wipro expects Revenue from IT Services business to be in the range of $2,102 million to $2,143 million. This translates to a sequential growth of 1.5% to 3.5%.

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