IT major Wipro today posted a 27.7 percent jump in consolidated net profit at Rs 2,972 crore for the March 2021 quarter, and was optimistic sustaining strong growth momentum in coming quarters.
Margins and profits have been better than expected.
The company’s gross revenue for the quarter ended 31 March 2021 was ₹162.5 billion, an increase of 3.4% YoY.
The IT services segment revenue was at $2,152.4 million, an increase of 3.9% QoQ and 3.8% YoY, and IT Services Operating Margin for the quarter was at 21.0%, an expansion of 344 bps YoY.
The Net Income for the quarter was ₹29.7 billion, an increase of 27.8% YoY and Earnings Per Share for the quarter was at ₹5.39, an increase of 31.8% YoY.
The company’s gross revenue for the year ended 31 March 2021 was ₹619.4 billion, an increase of 1.5% YoY and IT Services Segment revenue was at $8,136.5 million, a decrease of 1.4% YoY.
The IT Services Operating Margin for the year was at 20.3%, an expansion of 218 bps YoY, and Net Income for the year was ₹107.9 billion, an increase of 11.0% YoY.
The Earnings Per Share for the year was at ₹19.11, an increase of 14.6% YoY and Operating Cash Flow was at ₹147.6 billion, an increase of 46.6% YoY, which is 136.7% of Net Income.
The management said the firm’s largest ever acquisition of Capco will bolster its global financial services sector.
“I am delighted with the way we have finished the financial year. 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. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates,” CEO and MD Thierry Delaporte said.
Talking about the outlook for the quarter ending June 30, 2021, the firm expect revenue from our IT Services business to be in the range of $2,195 million to $2,238 million, which translates to a sequential growth of 2.0% to 4.0%, excluding revenue from recently announced acquisitions of Capco and Ampion.
“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. Led by disciplined execution, we generated strong operating cash flows at 136.7% of our net income for the full year. We successfully completed the share buyback program returning $1.3Bn to our shareholders,” CFO Jatin Dalal said.
On capital allocation, the firm said it has concluded the buyback of 237.5 million equity shares as approved earlier by the Board of Directors at their meeting held on October 13, 2020 for an aggregate amount of ₹95 billion, excluding buyback tax, in the quarter ended March 31, 2021.
The interim dividend of ₹1 declared by the Board at its meeting held on January 13, 2021 will be considered as the final dividend for the financial year 2020-21, the company said.
Wipro 4QFY21 Review
IT services revenue growth in up 3% QOQ and 0.5% yoy in CC terms
IT services revenue at $2152 mn vs $2071 mn, up 3.9% QOQ
IT services revenue Rs 15892 cr vs Rs 15333 cr, up 3.6% QOQ
IT services operating margin at 21% vs 21.7% QOQ
Consolidated revenue Rs 16245 cr vs Rs 15670 cr up 3.7% QOQ
Consolidated Profit at Rs 2974 cr vs Rs 2997 cr, down 0.8% QOQ
Attrition 12.1% vs 11% QOQ
Net utilisation 86% vs 86.3% QOQ
Wipro posts strong revenue growth across geographies
America 1 up 3.5% QOQ in CC terms
America 2 up 4% QOQ in CC terms
Europe up 3.7% QOQ in CC terms
APMEA down 1.6% QOQ CC terms
Wipro posts healthy growth across most Verticals (QOQ growth in CC terms )
BFSI up 2.7%
Consumer up 6.9%
Energy up 2.7%