Tech services and digital transformation firm Wipro on Wednesday reported an impressive growth — highest in 36 quarters — during FY21’s third quarter-ended December 31.
Wipro posted a consolidated net profit of ₹2,966.7 crore in Q3 compared with ₹2,455.8 crore, a 20.8 per cent rise for the corresponding previous period. Its revenues from operations grew 1.3 per cent to ₹15,670 crore from ₹15,470 crore in the corresponding previous year quarter.
Revenue guidance
For the quarter ending March 31, 2021, Wipro expects revenues from its IT services business to be in the $2,102-2,143 million range, a sequential growth of 1.5-3.5 per cent.
“Our growth was the highest in 36 quarters. Revenue growth was broad-based across sectors and markets and led by a surge in volumes,” said Thierry Delaporte, CEO and Managing Director, in an earnings conference call. “We expanded our operating margins during the quarter by 240 bps to 21.7 per cent. This again is the highest in the last 22 quarters,” he said.
According to Delaporte, the expansion was led by excellence in operations and focus on improving revenues. “Several operating metrics are at our all-time best including offshore mix, utilisation, attrition and optimised subcontracting,” he added.
Wipro said its new organisational structure, which came into effect on January 1, has made the company more robust, strategic, focussed and determined. So far, the transition has been smooth and the full realisation of the corporate and business change would start showing up in the next couple of quarters, said the company.
From a sectoral view, the company had all cylinders firing: Five out of 7 sectors grew over 4 per cent sequentially, he said.
“We closed our largest ever deal win in Continental Europe. The demand environment is improving steadily, especially for digital transformation, digital operations, and cloud services. We have moved into our new organisation structure and are stabilising quickly,” Delaporte added.
Jatin Dalal, CFO, said, “Our margins are now at a 22-quarter 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 per cent YoY with a significant improvement in outstanding receivables.” On the BSE, Wipro rose marginally to end the day at ₹458.75.
On the BSE, Wipro rose marginally to end the day at ₹458.75.
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