Wipro Earned Rs 33 Crore Profit Every Day In Last 90 Days; Salary Hiked For 80% Employees

Wipro Earned Rs 33 Crore Profit Every Day In Last 90 Days; Salary Hiked For 80% Employees
Wipro Earned Rs 33 Crore Profit Every Day In Last 90 Days; Salary Hiked For 80% Employees

The Bengaluru-based Wipro Ltd reported its quarterly revenue and profit, recorded for the fourth quarter of FY21 on April 15.

The company has reported a flat net profit for the quarter ending March at Rs 2,972 crore, which is a marginal rise of 0.14% compared to the profit of Rs 2,968 crore, recorded in the December quarter (Q3FY21).

The company has reported a year-on-year hike in the net profit of 27.78% to Rs 2,972.3 crore for Q4 FY21, up from its Q4FY20’s profit of Rs 2,326.1 crore.

The company has also reported a revenue spur expectation of about 11-13% for financial year 2021-22, along with 2-4% growth for the ongoing April-June quarter, without the inclusion of its recent acquisition of Capco and Ampion.

Wipro’s Sector-wise Revenue

With the Covid-19 pandemic hitting the economy in early March last year, the technology sector had to stall trade, losing overseas businesses and met with the urgency to shift complete systems and employees online, affecting costs and billing time.

However, by the second quarter of FY21, these (tech) companies were back on track and boomeranged due to complete dependency of businesses all around the globe on large deals of online tools and cloud computing among others.

Wipro has posted its Q4 results on Thursday, which has continued to meet the analyst expectations, amid the growing traction of digital services in the Covid environment.

According to 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%.

Wipro’s new chief executive officer and managing director, Thierry Delaporte commented on the results, “We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector.”

Wipro’s New Acquisitions

Wipro acquired the London-based consultancy firm Capco in March for $1.45 billion, with the view of increasing growth and scaling up its banking, insurance and financial services operations.

In only a month’s time, Wipro initiated another big acquisition for $117 million, of an Australian cybersecurity firm Ampion.

Wipro also announced closing 12 large deals during the quarter with a total contract value of $1.4 billion.

The company has commented that its revenue from IT services business will be in the range of $2.195 billion to $2.238 billion in the June quarter. 

The company’s CFO, Jatin Dalal said, “We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. We successfully completed the share buyback program returning $1.3Bn to our shareholders.”

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