Wipro reports Q3 FY22 net profit of Rs 29.7 billion, up 1.3% QoQ

Bangalore, Jan 12 (IANS): Wipro on Wednesday announced its results for the quarter ended December 31, 2021, recording gross revenue of 203.1 billion rupees ($2.7 billion), a 3.3% increase quarter-on-quarter and 29.6% YoY.

Wipro posted a net profit of 29.7 billion rupees ($399.1 million) for the third quarter, marking a 1.3% increase quarter-on-quarter.

Revenue from its IT services segment was $2,639.7 million, up 2.3% quarter-on-quarter and 27.5% year-on-year. Non-GAAP2 constant currency IT services segment revenue increased 3% quarter-on-quarter and 28.5% year-on-year.

Its IT services operating margin for the quarter was 17.6%, down 19 basis points quarter-on-quarter. Earnings per share for the quarter was Rs 5.43, an increase of 4.2% year-on-year.

The company’s operating cash flow was 30.1 billion rupees ($404.2 million), or 101.3% of net profit.

The closing headcount of employees for IT services was 231,671, an increase of 41,363 employees on a net year-over-year basis.

“We recruited 10,306 employees during the quarter. Wipro has declared an interim dividend of Rs 1 per ADS share/performance for the quarter ended December 31, 2021,” said Thierry Delaporte, CEO and Managing Director of Wipro.

“Wipro posted a fifth consecutive quarter of strong performance, both in terms of revenue and margins. Order bookings were also strong and we added seven new customers to the league in revenue of over $100 million in the past 12 months. Our strategy and improved execution continues to serve us well, and we are confident to build on this momentum. We are also pleased to have completed the acquisitions of Edgile and LeanSwift Solutions during the quarter, which will significantly strengthen our capabilities,” added Delaporte.

Jatin Dalal, Chief Financial Officer of Wipro, said, “We delivered strong operating margins after absorbing substantial investments in salary increases, driven by continued improvement in operating metrics. We have also improved our working capital by reducing our days of unpaid sales. into a strong operating cash flow conversion of 101.3% of net income. Additionally, we have declared an interim dividend of Rs 1 per share.

Looking ahead to the quarter ending March 31, 2022, the company expects IT services business revenue to be between $2,692 million and $2,745 million. This translates to 2-4% sequential growth.

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