Wipro Q3 Results Announced: In Line With Expectations
Net Income: Wipro has reported a net income of Rs 2,970 crore ($399.1 million) for the quarter, which is an increase of 1.3% on a Quarter-on-Quarter basis. The figure meets the estimates of analysts. However, the numbers remain unchanged on a YoY basis. The company’s year ago profit was Rs 2,968 crore.
Strong Revenue Growth: Wipro’s gross revenue stands at Rs 20,313.6 crore ($2.7 billion), which is at par with the estimates. The gross revenue has increased by 3.3% QoQ and 29.6% YoY. The revenue from the IT Services segment was reported at $2,639.7 million, which is an increase of 2.3% QoQ and 27.5% YoY. Similar growth is seen from the Non-GAAP constant currency IT Services Segment that posted revenue growth of 3.0% QoQ and 28.5% YoY.
Robust Operating Cash Flow Conversion: The company’s operating cash flow was 101.3% of Net Income earned in the quarter.
Wipro Q3 results 2022: Other Highlights
Deals Won and Acquisition: Wipro has added seven new customers in the more than $100 million revenue league in the past 12 months. The company also said that it has completed
the acquisitions of Edgile and LeanSwift Solutions in the quarter.
Higher Employee Addition in IT Services: The company has added 10,306 employees during the quarter. The number of employees for the IT Services segment stood at 231,671, a net increase of 41,363 employees YoY.
Operating Margin: Wipro reported an IT Services Operating Margin of 17.6% for the quarter, a decrease of 19 bps QoQ. The company has managed to keep healthy margins despite investing in salary increments.
Wipro Q3 results 2022: Review
Wipro has met the estimates presented by analysts and has performed well on a QoQ basis. However, the net profit figure has remained flat when compared to the same period of the previous year. When compared to the results of the previous quarter, both net profit and revenue growth remained healthy. Further, the company has done a commendable job in order bookings by adding seven new players in the over $100 Mn revenue league.
Wipro has reported equal to the estimated numbers for the quarter. On the brighter side, the company has shown strong operating cash flow conversion and operating margins. It has declared an interim dividend of ₹1 per equity share. The company has also posted its outlook for the quarter ending on March 31, 2022. It expects its IT Services segment to generate revenue in between $2,692 million to $2,745 million, which converts into a sequential growth of 2.0% to 4.0%.
Wipro’s shares traded in red during most part of the day. However, it gained momentum with heavy buying volumes in the closing market hour and finally closed at ₹691.35.