Wipro Dec’20 Quarter Results – Strong Broad Based Growth Performance; Margin Surprises Positively

 

Result Summary

·         Wipro reported revenues of US$ 2.1bn, up 3.9%/-1.1% QoQ/YoY (CC 3.4%/-2% QoQ/YoY), in line with our expectations of $ 2.05bn. (TCS Q3FY21 revenues was US$ 5.7bn, 4.1% CC QoQ).

·         Overall EBITM expanded 280bps QoQ at 21.6% and came ahead of our expectations. (TCS Adj. EBITM expanded 40bps QoQ to 26.6%).

·         IT Services EBITM expanded 243bps QoQ on back of revenue acceleration, offshoring (52.7% of revenue vs 50.4% QoQ), and operating efficiencies.

·         Adj. Profits at Rs29.7bn (+20.3% QoQ, 21% YoY), 15% ahead of our expectations.

·         The company announced an interim dividend of Rs1 per share.

·         Company guided Q4 growth to be in the range of 1.5% - 3.5% QoQ to $2,102mn to $2,143mn

·         It signed 12 deals with TCV >US$30mn during Q3 with combined TCV of US$1.2bn

Growth by Verticals (all in constant currency terms)

·         Financial Services:  -2.5%YoY ( V/s -3.3% YoY in Sep’20 quarter)

·         Manufacturing: -2.4%YoY ( V/s -1.5% YoY in Sep’20 quarter)

·         Healthcare: 3.7%YoY( V/s 2.3% YoY in Sep’20 quarter)

·         Communications: -11.4%YoY ( V/s -10.3% YoY in Sep’20 quarter)

·         Energy: -2.6% YoY ( V/s -5.4% YoY in Sep’20 quarter)

·         Consumer Business Unit: -3.6% YoY ( V/s -2.1% YoY in Sep’20 quarter)

·         Technology: 0.6% YoY ( V/s -7.1% YoY in Sep’20 quarter)

Growth by Geographies (all in constant currency terms)

·         US: -3.2% YoY ( V/s -4% YoY in Sep’20 quarter)

·         Europe: 1.4% YoY( V/s -5.7% YoY in Sep’20 quarter)

·         ROW : -2.5% YoY( V/s 2% YoY in Sep’20 quarter)

Manpower details

Total Headcount: 190,308, up  5,065 QoQ

LTM Attrition: 11%, V/s 11% in Sep’20 quarter and 13% in Jun’20 quarter..