Wipro Q3 net profit flat at Rs 2,969 cr YoY, up 1.3% sequentially

Wipro continued its growth momentum on the back of acquisitions and rising digital spends by customers even in a seasonally soft quarter. The company reported net profit at Rs 2,969 crore, which was flat year-on-year basis and profits grew 1.3 per cent on sequential basis.

Revenue for the quarter at Rs 20,311 crore was up 29.6 per cent YoY and and 3.3 per cent sequentially. In constant currency terms, the firm said revenues grew by 3 per cent. For Q4FY22 the company has guided for a growth range of 2-4 per cent at $2,692 million to $2,745 million.

Thierry Delaporte, CEO and MD said, “This is our fifth straight quarter of constant growth. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum.”

The company signed annual contract value of $2.85 billion. The management said that its TCVs were up 50 per cent y-o-y basis, especially in the mid-range deals. Moreover, the company’s win rate has also gone up by 300 basis points during the quarter.

For the quarter the company reported margins of 17.6 per cent. The company continued to see its attrition going up, for the quarter attrition was 22.7 per cent. Delaporte said that the company is witnessing attrition slowing down but it will still take a few quarters for attrition to stabilise. The company stated that for FY23 it will be onboarding 30,000 freshers. For FY22 Wipro onboarded 17,500 freshers.

The company also said that in light of the rising number of infections, Wipro will keep all its offices-India and international—shut for four weeks.

Jatin Dalal, Chief Financial Officer said, “We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of ₹1 per equity share.”

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