Wipro Q3 Results: IT major beats analysts' estimates with 15% jump in profit, declares dividend
Wipro reported a 14.8 per cent sequential jump in net profit to Rs 3,052.9 crore for the October-December period, beating analysts' estimates.
Wipro on Friday reported a 14.8 per cent sequential jump in net profit to Rs 3,052.9 crore for the October-December period, beating analysts' estimates. Bengaluru-based Wipro -- the country's fourth largest IT firm after TCS, Infosys and HCL Tech -- reported growth of 3.1 per cent in quarterly revenue to Rs 23,229 crore compared with the previous three months.
According to Zee Business research, Wipro was estimated to report a net profit of Rs 2,900 crore and revenue of Rs 23,280 crore.
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"We have delivered another quarter of double-digit revenue growth. Our total bookings were over $4.3 billion, led by solid large deal signings of over $1 billion," said Thierry Delaporte, CEO and Managing Director, Wipro.
"We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimisation. Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market," he said.
The IT major's operating margin -- a key measure of profitability -- improved by 120 basis points on a quarter-on-quarter basis to 16.3 per cent.
"The expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies," said Jatin Dalal, CFO, Wipro.
Attrition at Wipro eased by 180 basis points to 21.2 per cent compared with the July-September period -- a fourth back-to-back quarter of moderation, according to the IT company.
Wipro's results come at a time when IT companies have been scrambling to protect their margins owing to higher employee spends to tackle attrition.
The IT major declared an interim dividend of Re 1 per share.
Wipro expects revenue for the quarter ending March to be in the range of down 60 basis points to up 100 basis points sequentially in constant currency terms.
Wipro shares ended higher by Re 1 or 0.3 per cent at Rs 395.5 apiece on BSE ahead of the earnings announcement.
The Wipro stock lost 0.4 per cent of its value in the December quarter, a period in which the Sensex benchmark rose 5.9 per cent.
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