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The country's third largest information technology company - Wipro Limited - on Wednesday reported net profit of Rs 2,970 crore for quarter ended December 2021, marking an increase of 1.3 per cent from the previous quarter. The increase in profit came on the back of strong order bookings and addition of new customers, the company said.
Wipro’s gross revenue advanced 3.4 per cent sequentially to Rs 20,434 crore. Its IT services segment revenue rose 2.3 per cent sequentially to $2,639.7 million and in constant currency terms its revenue increased by 3 per cent quarter-on-quarter and 28.5 per cent annually, the company said in a press release.
Its margin from IT services decreased 19 basis points to 17.6 per cent.
"Our closing strength of employees for IT Services was at 2,31,671, an increase of 41,363 employees on a net basis annually. We added 10,306 employees during the quarter," Wipro said.
“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 $100 million 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, CEO and Managing Director of the company.
Wipro expects revenue from IT services business to be in the range of $2,692 million to $2,745 million in March quarter translating to a sequential growth of 2 to 4 per cent.
“We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3 per cent of net income. Additionally, we have declared an interim dividend of Rs 1 per equity share,” Jatin Dalal, Wipro’s CFO said in a statement.
During the quarter A US-based healthcare company has awarded Wipro a business process and platform services contract spanning claims processing and setting up a customer service centre using Wipro’s proprietary healthcare platform.
Wipro shares ended 0.4 per cent lower at Rs 691 ahead of its earnings announcement.
