IT major Wipro Ltd announced its financial results for the third quarter ended December 2022 of the current fiscal or Q3 FY23 on Friday. The Q3 was broadly stable with consolidated PAT witnessing double-digit growth sequentially, while revenue also picked up. Wipro’s attrition rate moderated furthermore. The company has declared an interim dividend of ₹1 per equity share. Read here Wipro Q3 results.
Emkay Global said, “IT services EBITM expanded by ~120bps sequentially to 16.3%, ~80 bps above our estimates, on the back of strong operational improvements and automation-led efficiencies which negated the impact of salary increases and promotions. (TCS IT services EBITM grew ~50bps QoQ to 24.5%; Infosys EBITM was flat QoQ at 21.5%; HCL EBITM grew ~160bps QoQ to 19.6%).”
Wipro Q3 results
Wipro has announced its December 2022 quarterly results. On a consolidated basis, the company posted a PAT of ₹3,052.9 crore in Q3FY23 up by 2.8% from a profit of ₹2,972.3 crore in Q3 of FY22. Sequentially, the company’s PAT rose by 15.24% from ₹2,649.1 crore in September 2022 quarter. Wipro expects Revenue from IT Services business for full year to be in the range of 11.5%-12% in CC terms.
During Q3FY23, Wipro posted 9.6% YoY growth in the financial services business. While the growth was highest in the consumer business unit to the tune of 16.8% YoY. It followed by the manufacturing business with 14.4% YoY growth. The energy business garnered 10.1% YoY growth, while healthcare and technology posted 8.9% and 4% year-on-year growth.
Wipro reported slightly disappointing results when it comes to its top line. The company’s QoQ revenue growth at 3.1% was a little subdued. Further, the revenue growth guidance for Q4 in constant currency (CC) terms is seen at -0.6% to 1% QoQ.
On a full-year basis, it will likely underperform its peers. Top-line aside, the company did put a good show in its operating metrics, the margins improved 120 basis points QoQ and are expected to improve further too. The deal wins like its other leading peers were strong. Thus all-in-all, a slight miss on the top line & a good show on its margins and profitability.
In Q3FY23, the company’s attrition rate moderated sharply by 180 basis points sequentially to 21.2% for twelve months for quarter. Wipro’s attrition rate was at 23% in the September 2022 quarter, while it was at 23.3% during June 2022 quarter. Wipro’s IT services operating margin during Q3 stood at 16.3% — expanding by 120 basis points quarter-on-quarter.
Wipro is the latest among its peers to announce an interim dividend, however, the payout is the lowest compared to TCS and HCL Tech. Wipro declared an interim dividend of Re 1 per equity share for its investors.
Total headcount stood at 258,744 in Q3FY23, lower by 435 employees compared to the total count of 259,179 employees witnessed in the September 2022 quarter.
Thierry Delaporte, CEO and Managing Director, said, “I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row.”
CEO further added, “We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimization. Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market.”
“As we move ahead, we expect to continue to benefit from these trends and help clients build future-proof, resilient enterprises,” CEO added.
Watch this video by CA Nitin Kaushik to Quarterly Results in detail.
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