Post disappointing Q3 results, Wipro shares tumble by 6%

Revenue didn’t meet the expectations, however, margins and net profit was in line with the estimates.

Indian IT giant Wipro has announced their Q3 results yesterday in the post-market hours. It is almost 9% down in a week and almost 6% down for the day. It has declined from Rs 712 to Rs 650 in the last five trading sessions

Q3 earnings report: 

On a consolidated basis, Wipro revenue rose 29.6% to Rs 20,313 crore as compared to Rs 15,670 crore in the last year period. On a constant currency basis, IT Services Segment Revenue increased by 3% QoQ and 28.5% YoY.

Operating profit stood at Rs 3,550 crore against Rs 3,381 crore last year same quarter, which is 4.90% up YoY. The operating margin is 17.6% which got contracted 400bps YoY.

Net profit is Rs 2,969 crore for the December quarter (Q3FY22). The profit was almost flat when compared with Rs 2,968 crore reported in the year-ago period.

On the outlook for Q4, Wipro said it expects revenue from the IT services business to be in the range of US$ 2,692 million to US$ 2,745 million, which translates to a sequential growth of 2% to 4%. The company's board has also declared an interim dividend of Rs 1 per equity share.

“Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than USD 100 mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly," said Thierry Delaporte, Wipro CEO and MD.

At the end of the trading session on Thursday, Wipro closed at Rs 650.05, down by 5.97% for the day.