Thierry Delaporte, CEO and MD of Wipro said the promotions announced earlier for employees have been completed.

Wipro Q3 net profit up 208 reports highest growth in 36 quartersImage source:
Money IT Wednesday, January 13, 2021 - 16:28

IT services major Wipro has reported a 20.8% increase net profit to Rs 2,970 crore for the October-December quarter of FY21. It has reported a gross revenue of Rs 15,670 crore, an increase of 1.3% compared to the same period last year. The growth, Thierry Delaporte, CEO and Managing Director said, is the highest in 36 quarters.

For the coming quarter, Wipro expect revenue from the IT services business to increase between 1.5-3.5% from the preceding quarter and be in the range of $2,102 million to $2,143 million. Thierry Delaporte said that the margins came in at a 22-month high. Wipro has declared an interim dividend of Rs 1 per equity share.

Addressing the media post the quarterly results, Thierry said the promotion for 80% of the eligible employees has been completed and will also be rolling out salary increases for them effective January 1. Wipro has also announced 100% variable pay-out for Q3 and Q4, making it three consecutive quarters of full pay-outs, he added.

Jatin Dalal, Chief Financial Officer said, “Our margins are now at a 22 quarters 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% YoY with a significant improvement in outstanding receivables.”

In terms of segments, IT Products Segment Revenue for the quarter was Rs 160 crore, while the profit came in at 9 crore. The company saw attrition of 11% in the quarter, with the current headcount standing at 190,308.

This quarter saw Wipro bag one of its largest deals where it will take over the IT units of METRO AG — METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L, a leading global wholesale company operating in the food service distribution industry.

The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to $1 billion.

This is also the last quarter before the company undergoes a major transition to a new operating model, which has been effective from January 1, 2021.

Commenting on the Q3 performance, Thierry said, “Wipro has delivered a second consecutive quarter of strong performance on order booking, revenue and margins. Five of our sectors grew over 4% 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 organization structure and are stabilizing quickly.”

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