Wipro Q4 Results: Large Deal Wins Drive Revenue Growth, Margin Contracts
Net profit rose 0.1% sequentially to Rs 2,972 crore in the quarter ended March.
Wipro Ltd.’s quarterly revenue and profit met analyst expectations as clients continued to spend on digital services amid the Covid-19 pandemic.
Net profit remained flat over the preceding quarter at Rs 2,972 crore in the three months ended March, according to its exchange filing. That compares with the Rs 2,897-crore consensus estimates of analysts tracked by Bloomberg.
Revenue rose 3.67% quarter-on-quarter to Rs 16,245 crore—higher than the estimated Rs 16,077 crore.
Revenue from IT services stood at $2,152.4 million, 3.9% more than the last quarter. Wipro had forecast 1.5-3.5% dollar revenue growth in the fourth quarter.
Operating profit was flat at Rs 3,328 crore.
Margin narrowed to 20.5% from 21.2% earlier but beat analysts forecast of 20.1%.
The company now expects revenue to grow 11-13% in financial year 2021-22. For the ongoing April-June quarter, it expects 2-4% growth, excluding new acquisitions Capco and Ampion.
India’s software services exporters have seen prospects improve over the last two quarters, recovering from the disruptions caused by Covid-19 and increased costs. Since then, large deal wins and higher client spending on cloud computing and artificial intelligence have triggered a rebound.
Wipro, which has lagged its larger rivals Tata Consultancy Services Ltd. and Infosys Ltd. for years, is now trying to regain lost ground under new boss Thierry Delaporte. In March, the company acquired London-based Capco for $1.45 billion—its largest ever—to spur growth and scale up its banking, insurance and financial services operations. It has also bought Australian cybersecurity firm Ampion for $117 million.
The Bengaluru-based firm said they closed 12 large deals during the quarter with a total contract value of $1.4 billion. It added one new customer in the $100-million-plus band and three clients in the $75-million-plus band. “We continue to see increasing traction in digital-oriented and other strategic deals,” a media release said.
“We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins,” Chief Executive and Managing Director Delaporte said in a media statement. “All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates.”
Shares of Wipro Ltd. closed 2.95% higher on the BSE, while the benchmark BSE Sensex closed 0.5% up.