Wipro Q3 Results: Profit Rises 15%, Revenue Meets Estimates

Wipro Ltd. posted growth in a seasonally weak quarter even as macroeconomic headwinds stoked recessionary fears in some of its biggest markets.

Segmental Performance

Revenue of IT services segment rose 3.1% sequentially to Rs 23,055.7 crore in the quarter ended December, according to the exchange filing. In dollar terms, it increased 6.2% over the year-ago period to $2,803.5 million. It was up 0.6% in constant currency terms.

For the fiscal ending March 31, the company has guided for revenue growth of 11.5%-12% in the IT services business.

The operating margin for the IT services segment stood at 16.3%, up 120 basis points sequentially. The operating cash flow stood at Rs 43,500 crore, or 142.5% of net income for the quarter.

“This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership," Jatin Dalal, chief financial officer at Wipro, said in the statement. "The margin growth was led by strong operational improvements and automation-led efficiencies."

Deal-Making

Wipro's total contract value rose 26% over the year ago to $4.3 billion in the October-December quarter. The growth was driven by large deal bookings, which were up 69% year-on-year. The top five clients grew 15.7% and the top 10 clients grew 14.7% in constant currency terms.

On Friday, shares of Wipro fell 0.20% to Rs 393.65 apiece on the BSE, even as the benchmark Sensex ended the day 0.51% higher at 60,261.18 points.