Wipro on January 13 reported a consolidated profit of Rs 2,966.70 crore for the October-December quarter, an increase of 20.8 percent from Rs 2,455.80 crore in the corresponding quarter of the previous year.
Consolidated revenue stood at Rs 15,670 crore, which was 1.3 percent higher compared to Rs 15,470.50 crore reported in the Q3FY20.
The company's dollar revenue growth came at 3.9 percent versus 3.7 percent QoQ. The company said its dollar revenue growth was the highest in 36 quarters.
Also read: Wipro Q3 profit rises 21% YoY, dollar revenue growth highest in 36 quarters; announces interim dividend
Here are the highlights of Wipro's Q3 FY20 earnings call compiled by Narnolia Financial Advisors:
The management is optimistic about 2021 for businesses as well as clients. Wipro has moved into new organisation structure and is stabilising quickly.
It has delivered a second consecutive quarter of strong performance based on healthy revenue growth, acceleration in order booking, margin expansion, sustained lower employee turnover and solid operating cash flows in 3Q.
Revenue grew by 3.9 percent QoQ in rupee terms, 3.7 percent QoQ in CC terms in 3QFY21. IT services segment revenue grew by 3.4 percent QoQ in CC terms.
Growth in revenue across the sectors and verticals is led by a surge in volumes. Operating margins expanded during the quarter by 240 BPS to 21.7 percent; which is the highest in more than 22 quarters.
Expansion in margins was led by improved revenue growth trajectory and excellence in operations. Focus on quality of revenue with several metrics at an all-time high, increasing offshore mix, utilization, and optimising sub-contracting also aided growth.
The management expects revenue from IT services to be in the range of $ 2,102 million-2,143 million, which translates to a sequential growth of 1.5 percent to 3.5 percent.
The company closed its largest-ever deal win in Continental Europe.
The demand environment is steadily improving, especially for digital transformation, digital operations and cloud services.
Operating cash flows in 3Q grew by 45 percent YoY, with a significant improvement in outstanding receivables.
Utilization and attrition rate improved in the quarter, leading to margin expansion.
Good order booking across major geographies in the US, gross turnover was very healthy and the order booking grew double-digit YoY.
Few large deal conversions led to Europe growing faster on YoY basis at 1.4 percent in CC terms. Demand in Europe is expected to remain strong, the management said.
Demand is being driven by an acceleration in the adoption of cloud, digital transformation and driving efficiencies.
From sectors' view, five of the seven sectors grew 4 percent sequentially. The consumer sector is trying to stabilise on the back of solid demands. BFSI grew driven by demand across all sub-verticals.