Wipro Q4 consolidated profit, revenue meet market estimates

Bengaluru-based Wipro today posted a 4% sequential growth in consolidated net profit for the January-March quarter to Rs 3,087 crore.

Revenues of the information technology company grew 2.7% on quarter to Rs 20,861 crore, in line with its guidance for a 2-4% sequential growth in sales.

Revenue was also in line with analysts’ estimates while profit was higher than the Rs 2,997 crore estimated by Axis Securities.

Margins of the IT services segment contracted 60 bps on quarter to 17.0% during January-March. The margins were at 17.7% for the whole fiscal year.

It added 116 new clients during the quarter and 428 during the year. Its attrition was at 23.8% with headcount at 243,128 at the end of March.

For the fiscal year 2021-22, the company's revenue grew 27.7% to Rs 79,090 crore, while its net profit grew 13.2% to Rs 12,220 crore.

The company expects revenue from IT services business to be in the range of $2,748-$2,803million in Apr-Jun, a sequential growth of 1-3%.

OTHER KEY HIGHLIGHTS

1) Earnings per share for the quarter was at Rs 5.64 ($0.071), an increase of 4.6% YoY.

2) Operating cash flow was at Rs 23.3 billion ($307.3 million), 75.5% of net income.

3) Customer count in above $100-million account rose from 19 from 11 in FY22.

4) The company closed 37 large deals resulting in FY22.

5) The interim dividends Rs 6 per share shall be considered as the final dividend for the 2021-22.

MANAGEMENT COMMENTARY

“We have had an outstanding year, finishing with $10.4 billion in revenues, and an industry-leading growth of 27% year on year," Wipro CEO and Managing Director Thierry Delaporte said.

This is the sixth straight quarter of strong revenue growth at or over 3%, Delaporte said. "With all markets, sectors and Global Business Lines now growing in double-digits year on year, we have a strong foundation for next year’s growth,” he said.

Chief Financial Officer Jatin Dalal said Wipro delivered operating margins of 17.7% for the year, after significant investments on solutions, capabilities and talent.

“Our efforts on client mining have resulted in an addition of eight customers in more than $100 million bucket on YoY basis," Dalal said.