Wipro Ltd. posted growth in a seasonally weak quarter even as macroeconomic headwinds stoked recessionary fears in some of its biggest markets.
Revenue of India's fourth-largest IT services firm rose 3.08% over the previous quarter to Rs 23,230 crore in the three months ended December, according to an exchange filing on Friday. That compares with the Rs 23,346-crore consensus estimate of analysts tracked by Bloomberg.
Wipro Q3 Results: Key Highlights (QoQ)
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Revenue up 3.08% at Rs 23,230 crore (Estimate: Rs 23,346 crore)
EBIT up 15.26% to Rs 3,624 crore (Estimate: Rs 3,481 crore)
EBIT margin at 15.6% vs 13.95% (Estimate: 14.9%)
Net profit up 15.70% at Rs 3,065 crore (Estimate: Rs 2,976 crore)
The company has declared an interim dividend of Rs 1 per share.
The attrition rate has eased 180 basis points from the previous quarter to 21.2% in October-December on a trailing 12-month basis.
"We have delivered another quarter of double-digit revenue growth. Our total bookings were over $4.3 billion, lead by large deal signings of over $1 billion," Thierry Delaporte, chief executive at Wipro, said in a statement. "We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row."
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.
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