Wipro Q4FY21 results: Revenue grew 3.7% QoQ; IT services revenue to grow at 2-4% in Q1FY22
IT services company Wipro on Thursday, April 15, 2021, reported its consolidated financial results of the quarter ended March 31, 2021.
IT services company Wipro on Thursday, April 15, 2021, reported its consolidated financial results of the quarter ended March 31, 2021. The software company has reported a 0.1 per cent quarter-on-quarter rise in the consolidated profit at Rs 2,972 crore in the reported quarter. The company has posted a consolidated profit of Rs 2,968 crore in the quarter ended December 31, 2021.
The consolidated revenue from operations of the company rose 3.7 per cent at Rs 16,245 crore in Q4FY21 as against Rs 15,670 crore posted in Q3FY21. The dollar revenue grew by 3.9% at $215.2 crore against $15,670 crore posted in the previous quarter.
The revenue growth in constant currency stood at three per cent for the fourth quarter of fiscal 2020-21 and the top-line growth in dollar terms was at 3.9 per cent.
The IT services' earnings before interest and tax (EBIT) grew by 1.1 per cent QoQ to Rs 3,417 crore and margin contracted 80 bps QoQ at 20.92 per cent for Q4FY21. The margin was hit by wage hikes. IT services operating margin for the quarter witnessed an expansion of 344 bps YoY, and for the year at 20.3 per cent, an expansion of 218 bps YoY.
Thierry Delaporte, CEO and Managing Director said, "I am delighted with the way we have finished the financial year. We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates."
Jatin Dalal, Chief Financial Officer said, "We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of the wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. Led by disciplined execution, we generated strong operating cash flows at 136.7 per cent of our net income for the full year. We successfully completed the share buyback program returning $1.3Bn to our shareholders."
Providing its outlook for the quarter ended June 30, 2021, i.e. Q1FY21, the company said, we expect Revenue from our IT Services business to be in the range of $219.5 crore to $223.8 crore. This translates to a sequential growth of 2.0 per cent to 4.0 per cent. This does not include revenue from our recently announced acquisitions of Capco and Ampion. Outlook is based on the following exchange rates: GBP/USD at 1.39, Euro/USD at 1.20, AUD/USD at 0.78, USD/INR at 72.76 and CAD/USD at 0.78.
· In the quarter ended March 31, 2021, the Company has concluded the buyback of 23.75 crore equity shares as approved earlier by the Board of Directors at their meeting held on October 13, 2020, for an aggregate amount of Rs 9,500 crore.
· The interim dividend of Rs 1 declared by the Board at its meeting held on January 13, 2021, shall be considered as the final dividend for the financial year 2020-21.
· Wipro continued its momentum in winning large deals with our customers as described below:
· Wipro has won a multi-million-dollar integrated engagement from a leading US-based industrial manufacturing company to transform and modernize its business functions and enable it to become a digital enterprise via transformation in applications, infrastructure, cybersecurity and service delivery.
· Wipro has won a multi-year strategic contract from a US-based digital transformation and consulting agency to provide Infrastructure Managed Services for its Data Center, and Network and Tools landscape. Wipro will leverage AI Ops tool stack to automate the client's infrastructure to reduce turnaround time across requests and incidents, improve operational efficiency, and deliver a superior user experience for its end customer, a leading US-based Federal agency.