Wipro Q3 Results: Revenue At Higher End Of Guidance; Attrition Inches Up
The company's revenue rose 3.28% sequentially to Rs 20,313.6 crore in the quarter ended December.
Wipro Ltd.'s revenue rose in the third quarter driven by its software services segment even as margins came under pressure.
Revenue rose 3.28% sequentially to Rs 20,313.6 crore in the quarter ended December, according to the Bengaluru-based company's exchange filing. Analysts' estimates compiled by Bloomberg pegged the metric at Rs 20,270 crore. The third-quarter revenue growth factors in acquisitions undertaken by the company at the start of 2021.
Revenue from IT services jumped 2.31% over the preceding quarter to $2639.7 million and 3% in constant currency terms.
In the preceding quarter, Wipro had guided for revenue from its IT services business at $2,631-2,683 million for the three months through December. That’s a 2-4% sequential growth.
The company has now guided for revenue of $2,692-2,745 million for the March quarter. That's a 2-4% sequential growth projection over December quarter and translates into a revenue growth of 26.9-27.5% for fiscal 2022.
Highlights (QoQ)
Net profit rose 2.25% to Rs 2,996.5 crore, compared with the Rs 3,002-crore consensus estimate.
Ebit up 2.4% to Rs 3,575.20 crore.
Margin contracted 15 basis points to 17.6%.
Twelve-month trailing attrition rate rose to 22.7% from 20.5% at the end of second quarter.
IT Services Revenue
Revenue from IT services segment grew 2.3% sequentially to $2,639.7 million. The company added large deals worth $600 million during the quarter, Thierry Delaporte, managing director and chief executive officer of Wipro, was quoted as saying in a statement.
Segmental Revenue
Revenue was led by growth in the BFSI and consumer business arms.
Shares of Wipro fell 0.4% on Wednesday compared with the S&P BSE Sensex's 0.9% rise.