Both the bottomline and the topline were largely on expected lines.
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The board has also recommended an interim dividend payout of Re 1 a share.
Sequentially, the revenue declined 1.4%, whereas the profit rose 1.8%.
For the nine months ended December, the software major’s consolidated revenue rose a mere 0.4% to Rs 67,552 crore, whereas the net profit declined nearly 1% to Rs 8,211 crore.
Wipro Q4 Guidance
For the quarter ended March, Wipro expects revenue from its IT Services business to be in the range of $2.62 billion to $2.67 billion. This translates into -1.5% to +0.5% growth sequentially in constant currency terms.
Discover the stories of your interest
Most analysts had expected the Bengaluru-based software company to give -1% to +1% growth in constant currency revenue.In the December quarter, IT services segment revenue declined 2.1% sequentially to $2.66 billion.
Wipro had guided for a 3.5-1.5% sequential decline in IT services revenue for the December quarter, after posting a 1.4% fall in the September quarter.
IT services operating margin for the quarter contracted by 11 basis points sequentially to 16%. Analysts had predicted a steeper contraction in the profitability.
Deal Wins
During the seasonally weak December quarter, the country’s fourth-largest IT firm won deals worth $3.8 billion, up just 0.2% sequentially, and large deal bookings was a little over $900 million.
“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20% year-to-date growth,” said MD and CEO, Thierry Delaporte.
“We are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business,” Delaporte said.
On the profitability front, CFO Aparna C Iyer said that strong execution across key metrics cushioned the margins.
“We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people,” Iyer said.
One good news for Wipro was that the attrition levels came down to a 10-quarter low in the three months ended December. Voluntary attrition was 12.3% in the last 12 months.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Both the bottomline and the topline were largely on expected lines.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIM Kozhikode | IIMK Senior Management Programme | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
| IIM Lucknow | IIML Executive Programme in FinTech, Banking & Applied Risk Management | Visit |
The board has also recommended an interim dividend payout of Re 1 a share.
Sequentially, the revenue declined 1.4%, whereas the profit rose 1.8%.
For the nine months ended December, the software major’s consolidated revenue rose a mere 0.4% to Rs 67,552 crore, whereas the net profit declined nearly 1% to Rs 8,211 crore.
Wipro Q4 Guidance
For the quarter ended March, Wipro expects revenue from its IT Services business to be in the range of $2.62 billion to $2.67 billion. This translates into -1.5% to +0.5% growth sequentially in constant currency terms.
Discover the stories of your interest
Most analysts had expected the Bengaluru-based software company to give -1% to +1% growth in constant currency revenue.In the December quarter, IT services segment revenue declined 2.1% sequentially to $2.66 billion.
Wipro had guided for a 3.5-1.5% sequential decline in IT services revenue for the December quarter, after posting a 1.4% fall in the September quarter.
IT services operating margin for the quarter contracted by 11 basis points sequentially to 16%. Analysts had predicted a steeper contraction in the profitability.
Deal Wins
During the seasonally weak December quarter, the country’s fourth-largest IT firm won deals worth $3.8 billion, up just 0.2% sequentially, and large deal bookings was a little over $900 million.
“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20% year-to-date growth,” said MD and CEO, Thierry Delaporte.
“We are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business,” Delaporte said.
On the profitability front, CFO Aparna C Iyer said that strong execution across key metrics cushioned the margins.
“We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people,” Iyer said.
One good news for Wipro was that the attrition levels came down to a 10-quarter low in the three months ended December. Voluntary attrition was 12.3% in the last 12 months.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)