Wipro Q3 earnings betters expectations

Wipro Q3 earnings betters expectations

Shares of Wipro snapped a 10-session winning streak to be the worst performer on the Nifty 50 index even as the software services provider reported better earnings performance for the fiscal third quarter to December.
The company’s revenue rose 3.7% over the previous quarter to Rs 15,670 crore in the quarter ended December, aided by a ramp-up in spending on technology as uncertainties stemming from the Covid-19 pandemic waned. Dollar revenue rose to $2,071 million from $1,992.4 million.

Its net profit rose 20.3% sequentially, while EBIT margin hit a 22-quarter high. Wipro now expects revenue from IT services to grow 1.5-3.5% in the quarter ending March 2021.
The company’s dollar revenue growth came at 3.9% versus 3.7% QoQ.
Wipro’s CC revenue growth for the quarter came at 3.4%.
IT services’ revenue grew by 3.8% to Rs 15,333.1 crore versus Rs 14,768.1 crore QoQ. IT services EBIT grew 17.1% to Rs 3,320.4 crore versus Rs 2,835.1 crore QoQ.

IT services EBIT margin came in at 21.7% versus 19.2% QoQ. EBIT margin was the highest in the last 22 quarters.
IT services dollar revenue grew 3.7% to $2,071 million versus $1,992.4 million QoQ.
Wipro expects its dollar revenue in the range of $2,102-2,143 million for the March quarter, a growth of 1.5-3.5% over the December quarter.
The company has announced an interim dividend of Rs 1 per equity share of par value Rs 2 each to the members of the company as of January 25, 2021, being the record date. The payment of the interim dividend will be made on or before February 2, 2021.

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