Wipro on Wednesday posted a strong set of numbers for the October-December quarter. The company’s revenues during the period stood at Rs 15,670 crore while net profit was at Rs 2,970 crore.
Operating margin expanded sequentially by 243 bps to 21.7%, a significant growth in the last 22 quarters. The company surpassed all market estimations and gave a revenue guidance of 1.5%-3.5% for the January-March quarter.
Wipro CEO and MD Thierry Delaporte said: “Optimisation of operations and sub-contracting has really worked for us. We have also closed a $700-million five-year deal with Metro AG, extendable to four more years with a scope of touching a billion dollars, during this quarter.”
“We have also secured a multi-million dollar, multi-year deal with a leading US-based mortgage lender,” he added.
The management also announced an interim dividend of Rs 1 per equity share with the record date of January 25. The company has also closed a Rs 9,500-share buyback on January 11.
Wipro has seen growth across all geographies, with US driving the most with 57.6% contribution to the revenue. Five out of the seven business sectors have grown sequentially by over 4% for the company, which has further added to the strong numbers. “Our operating cash flows grew 45% y-o-y with a significant improvement in outstanding receivables,” Wipro CFO Jatin Dalal said.
Digital now contributes to over 46% of the company’s revenue, which includes cloud, data analytics, AI and digital platforms. BFSI continues to be a large contributing business segment with 30.5% of the revenue. With new energy, telecom, media and manufacturing deals in the pipeline, the company has given a revenue estimate of $2.1-2.15 billion for Q4FY21.
Recently, Wipro extended work from home for its employees till April 2021, with over 98% of the employees continuing to work remotely. The management has maintained employee utilisation 86% with no furloughs. Localised hiring and remote workforce will continue to be the trend for the company till the end of fiscal 2021.