Consolidated sales of Wipro for the quarter ended Dec 2020 at Rs 15670 crore registered a growth of 3.9%QoQ and a 1.1%YoY. The IT services revenue of the company at USD 2071 million was higher by 4%QoQ and down 1%YoY. In constant currency terms the IT services revenue was up 3.4%QoQ. Sequential growth of IT services revenue was led by broad based growth across all strategic business units/verticals. The core BFSI which accounts for about 31% of IT services revenue was up by 1.8%QoQ. Similarly the CBU (consumer business unit), ENRU (Energy, Natural Resources & Utilities) and HBU (healthcare business unit) has registered strong 5.6%QoQ, 5.4%QoQ and 5.2%QoQ respectively. The communication, manufacturing and technology business units have registered a growth of 2%QoQ, 4.5%QoQ and 4.8%QoQ respectively. OPM expanded by 350 bps to 26.3% and thus the operating profit was up by 20% to Rs 4127.50 crore. Other income was up by 18% to Rs 654.10 crore and thus the PBIDT was up by 20% to Rs 4781.60 crore. The interest cost was up by 10% to Rs 140 crore and the depreciation was up by 20% to Rs 791.20 crore. The PBT was up by 20%QoQ to Rs 3850.40 crore after accounting for higher interest and depreciation cost. With taxation stand higher by 18%QoQ to Rs 852.60 crore, the PAT was up by 21%QoQ to Rs 2997.80 crore. The minority interest was up by 59%qoq to Rs 29.80 crore and thus the net profit was up by 20%qoq to Rs 2968 crore.
Quarterly performance YoY comparison
On y-o-y basis, consolidated sales for the quarter was up by 1% to Rs 15670 crore. But with OPM expanded by 570 basis points to 26.3%, the operating profit was up by 30% to Rs 4127.50 crore. The PBT was up by 25% to Rs 3850.40 crore hit by lower OI as well as higher depreciation. The PAT was up by 22% to Rs 2997.80 crore with taxation up by 38% to Rs 852.60 crore. Eventually the net profit was up by 21% to Rs 2968 crore after accounting for 320%yoy increase in MI to Rs 29.80 crore.
Nine month performance
Consolidated sales for the period was up by 1%yoy to Rs 45689.50 crore. OPM expanded by 320 bps to 23.5% and thus the operating profit was up by impressive 17%yoy to Rs 10756.40 crore. The PBT was up by 9% to Rs 10153 crore after accounting for lower OI, lower interest and higher depreciation cost. With taxation stand higher by 22%yoy to Rs 2259.30 crore, the PAT was up by 6% to Rs 7893.70 crore. With MI being share of profit of Rs 69.60 crore, a jump of 129%, net profit was up by 6%yoy to Rs 7824.10 crore.
Outlook for the quarter ending March 2021
Expect Revenue from IT Services business to be in the range of USD 2,102 million to USD 2,143 million. This translates to a sequential growth of 1.5% to 3.5%.
Other developments
The Board of Directors in their meeting held on January 13, 2021, declared an interim dividend of Rs 1/- (USD 0.01) per equity share and ADR (50% on an equity share of par value of Rs 2/-).
On October 13, 2020, 1he Board of Directors approved a proposal to Buyback up to 237,500,000 equity shares of Rs 2 each (representing 4.16% of total paid-up equity share capital as at September 30, 2020) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of Rs 400 per equity share for an aggregate amount not exceeding Rs 95,000 million (Buyback), in accordance with the provisions contained in 1he Securities and Exchange Board of lndia (Buy-back of Securities) Regulations, 2018, as amended and the Companies Act, 2013 and rules made thereunder (Buyback Regulations). Subsequently, the shareholders of the Company approved the Buyback through postal ballot (including e-voting) on November 16, 2020 and December 11, 2020 was fixed as the record date for the Buyback. In accordance wi1h the provisions of1he Buyback Regulations, 1he Letter of offer for the buyback was approved by SEBI on December 21, 2020 and tender period for Buyback opened on December 29, 2020 and will close on January 11, 2021. Consequently, the Company has recorded a liability towards gross obligation on Buyback of equity shares of Rs 95,000 million and the corresponding liability for tax on buyback of Rs 22,021 million as at December 31, 2020.
Management comments
Thierry Delaporte, CEO and Managing Director said, Wipro has delivered a second consecutive quarter of strong performance on order booking, revenue and margins. Five of our sectors grew over 4% sequentially. We closed our largest ever deal win in Continental Europe. The demand environment is steadily improving, especially for digital transformation, digital operations, and cloud services. I am also pleased to share with you that we have moved into our new organization structure and are stabilizing quickly.
Jatin Dalal, Chief Financial Officer said, Our margins are now at a 22 quarters high. The expansion was led by improved revenue growth trajectory and excellence in operations with several metrics at an all-time high. Our Operating Cash Flows grew by 45% YoY with a significant improvement in outstanding receivables.
 Wipro: Consolidated Financial Results
| 2012 (3) | 2009 (3) | Var. (%) | 1912 (3) | Var. (%) | 2012 (9) | 1912 (9) | Var. (%) | 2003 (12) | 1903 (12) | Var. (%) |
| Sales | 15670.00 | 15096.70 | 4 | 15470.50 | 1 | 45689.50 | 45387.10 | 1 | 61137.60 | 59018.90 | 4 |
| OPM (%) | 26.3 | 22.8 | | 20.6 | | 23.5 | 20.3 | | 20.2 | 19.7 | |
| OP | 4127.50 | 3437.10 | 20 | 3183.50 | 30 | 10756.40 | 9224.50 | 17 | 12345.20 | 11612.60 | 6 |
| Other inc. | 654.10 | 554.70 | 18 | 609.70 | 7 | 1857.40 | 2135.00 | -13 | 2725.00 | 2613.80 | 4 |
| PBIDT | 4781.60 | 3991.80 | 20 | 3793.20 | 26 | 12613.80 | 11359.50 | 11 | 15070.20 | 14226.40 | 6 |
| Interest | 140.00 | 126.70 | 10 | 184.40 | -24 | 396.60 | 567.50 | -30 | 732.80 | 737.50 | -1 |
| PBDT | 4641.60 | 3865.10 | 20 | 3608.80 | 29 | 12217.20 | 10792.00 | 13 | 14337.40 | 13488.90 | 6 |
| Dep. | 791.20 | 657.80 | 20 | 529.40 | 49 | 2064.20 | 1505.90 | 37 | 2085.50 | 1946.70 | 7 |
| PBT | 3850.40 | 3207.30 | 20 | 3079.40 | 25 | 10153.00 | 9286.10 | 9 | 12251.90 | 11542.20 | 6 |
| Tax | 852.60 | 722.90 | 18 | 616.40 | 38 | 2259.30 | 1859.50 | 22 | 2480.10 | 2524.30 | -2 |
| PAT | 2997.80 | 2484.40 | 21 | 2463.00 | 22 | 7893.70 | 7426.60 | 6 | 9771.80 | 9017.90 | 8 |
| MI | 29.80 | 18.70 | 59 | 7.10 | 320 | 69.60 | 30.40 | 129 | 49.50 | 14.20 | 249 |
| Net Profit | 2968.00 | 2465.70 | 20 | 2455.90 | 21 | 7824.10 | 7396.20 | 6 | 9722.30 | 9003.70 | 8 |
| EPS (Rs)* | 21.7 | 18.0 | | 17.9 | | 19.0 | 18.0 | | 17.8 | 16.4 | |
* On post buyback equity capital of Rs 1095.39 crore, Face value Rs 2.
Figures in crore
Source: Capitaline Databases
EO: Extraordinary items
EPS is adjusted after EO and relevant tax |
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