Wipro on Wednesday posted a sturdy set of numbers for the October-December quarter. The company’s revenues in the course of the period stood at Rs 15,670 crore when net profit was at Rs 2,970 crore.
Operating margin expanded sequentially by 243 bps to 21.7%, a important development in the final 22 quarters. The corporation surpassed all industry estimations and gave a income guidance of 1.5%-3.5% for the January-March quarter.
Wipro CEO and MD Thierry Delaporte stated: “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 corporation has also closed a Rs 9,500-share buyback on January 11.
Wipro has observed development across all geographies, with US driving the most with 57.6% contribution to the income. Five out of the seven enterprise sectors have grown sequentially by more than 4% for the corporation, which has additional added to the sturdy numbers. “Our operating cash flows grew 45% y-o-y with a significant improvement in outstanding receivables,” Wipro CFO Jatin Dalal stated.
Digital now contributes to more than 46% of the company’s income, which contains cloud, information analytics, AI and digital platforms. BFSI continues to be a huge contributing enterprise segment with 30.5% of the income. With new power, telecom, media and manufacturing bargains in the pipeline, the corporation has provided a income estimate of $2.1-2.15 billion for Q4FY21.
Recently, Wipro extended work from household for its staff till April 2021, with more than 98% of the staff 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 corporation till the finish of fiscal 2021.