Wipro’s Net profit rises by 21% in the 3rd Quarter

Wipro’s Net profit rises by 21% in the 3rd Quarter

Reporting one of its strongest quarters in recent years, Bengaluru’s Wipro IT firm reported a 20.9% year-on-year (YoY) increase in consolidated net profit on Wednesday at Rs 2.968 crore for the December quarter. A profit of Rs 2,456 crore was reported in the corresponding quarter last year. The company reported that its dollar revenue growth was the highest in 36 quarters.

It recorded consolidated revenue of Rs 15,670 crore, slightly up 1.3 percent from Rs 15,471 crore recorded in Q3FY20. Revenues improved by 3.67 percent on a quarterly basis. The operating margin was also 22-quarter high for the Bengaluru-based company at 21.7%, driven by improved revenue growth trajectory and excellence in multi-meter operations at an all-time high. Showing a sequential growth of 3.9 percent, consolidated IT services revenue was at $2,071 million.

The performance was also well ahead of Street’s expectations for most of the parameters. According to the Bloomberg analysts’ survey, revenue was estimated at Rs 15,499 crore, Ebitda at Rs 3,513 crore (actual Rs 4,128 crore), and net profit at Rs 2,567 crore.

“Last year we witnessed unprecedented times and now with improved vaccine prospects, we are hopeful 2021 will be a better year for society, businesses and for us,”

Thierry Delaporte, CEO and Managing Director, Wipro.

The company, which has gone to live with its new organizational structure this month, has given a buzzing outlook. For the March quarter, Wipro expects its IT services revenue to grow between 1.5-3.5 percent compared to the October-December 2020 period.

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