Wipro Q3 Results: Revenue At Higher End Of Guidance; Attrition Inches Up
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.
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.
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.