This Article is From Jan 13, 2021

Wipro Q3 Results: Software Services Major's Profit Rises 20.4%

Wipro Q3 Earnings: Dollar revenue growth was the highest in 36 quarters

Wipro Q3 Results: Software Services Major's Profit Rises 20.4%

Wipro's CC revenue growth for the quarter stood at 3.4 per cent.

Software services major Wipro on Wednesday reported a consolidated profit of Rs 2,968 crore for the October-December (Q3) quarter, rising 20.4 per cent against Rs 2,465.7 crore in the previous quarter.

Wipro's consolidated revenue for the quarter clocked Rs 15,670 crore higher by 3.8 per cent against Rs 15,096.7 crore in the September quarter (Q2).

The company's dollar revenue growth was at 3.9 per cent versus 3.7 per cent quarter-over-quarter. Wipro said its dollar revenue growth was the highest in 36 quarters.

Wipro's CC revenue growth for the quarter stood at 3.4 per cent.

IT services revenue grew by 3.8 per cent to Rs 15,333.1 crore against Rs 14,768.1 crore quarter-over-quarter. IT services earnings before interest and taxes (EBIT) grew 17.1 per cent to Rs 3,320.4 crore against Rs 2,835.1 crore quarter-over-quarter.

IT services EBIT margin stood at 21.7 per cent against 19.2 per cent quarter-over-quarter the highest in the last 22 quarters.

IT services dollar revenue grew 3.7 per cent to $2,071 million against $1,992.4 million quarter-over-quarter.

Wipro anticipates its dollar revenue to be in the range of $2,102-2,143 million for the March quarter a growth of 1.5-3.5 per cent over the December quarter.

Thierry Delaporte, chief executive officer 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 per cent 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 organisation structure and are stabilising quickly.”

Analysts largely had expected a profit of Rs 5,050 crore, according to Refinitiv data quoted in a Reuters report. The company's larger rival Tata Consultancy Services (TCS) reported a higher third-quarter profit last week, beating estimates. TCS net profit rose to Rs 8,701 crore in the three months to December 31, 2020, from ₹ 8,118 crore a year earlier. Infosys' smaller rival Wipro also reported a consolidated net profit of 20.4 per cent to ₹ 2,968 crore. Wipro's dollar revenue growth was reported to be the highest in 36 quarters.