Wipro Q3FY22 Results: Profit rises 1.3% QoQ to Rs 2,969 crore; declares interim dividend of Rs 1

IT major Wipro on Wednesday reported a 1.3 per cent QoQ rise in its consolidated profit at Rs 2,969 crore for the quarter ended December 31, 2021 (Q3FY22). It had posted a profit of Rs 2,930 crore in the previous quarter ended September 30, 2021 (Q2FY22).

Its revenue from operations grew 3.3 per cent QoQ to Rs 20,313 crore in the reported quarter compared to Rs 19,667 crore posted in Q2FY22. The company's IT services revenue in dollar terms grew 2.3% QoQ to $263.97 crore compared to $258 crore posted in the previous quarter. IT services operating margin was flat at 17.6 per cent in Q3FY22 compared to 17.8 per cent posted in Q2FY22.

Besides, the Board of Directors of Wipro has declared an interim dividend of Rs 1 per equity share of par value Rs 2 each to the Members of the Company as of January 24, 2022, being the Record Date. The payment of Interim Dividend will be made on or before February 5, 2022.

Thierry Delaporte, CEO and Managing Director said, "Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. 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. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly."

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 a strong operating cash flow conversion, of 101.3 per cent of net income. Additionally, we have declared an interim dividend of Rs 1 per equity share."

Outlook for the quarter ending March 31, 2022

We expect Revenue from our IT Services business to be in the range of $2,69.2 crore to $2,74.5 crore. This translates to a sequential growth of 2.0 per cent to 4.0 per cent. (*Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR at 75.73 and CAD/USD at 0.79)

The attrition rose to 22.7 per cent (voluntary TTM) in Q3 from 20.5 per cent in the preceding quarter.