BENGALURU: Amid a seasonally weak quarter for the IT sector, Wipro managed to meet Street estimates and posted a 2.8% year-on-year (YoY) increase in its consolidated net profit at Rs 3,053 crore in the December quarter, compared to Rs 2,969 crore in the same quarter last year.
The company’s consolidated revenues for the third quarter were up 14.3% at Rs 23,229 crore compared to Rs 20,314 crore in the same quarter last fiscal. Thierry Delaporte, CEO and managing director of Wipro, said the macro-economic uncertainty continues but tech spending remains robust.
“Our clients are looking for value-driven transformation, tighter governance, and improved return on investments. Cloud transformation continues to be a priority, even as we see a higher focus on returns,” he said. He added that the spend in the retail sector, particularly in America, might see a potential slowdown.
Taking about Q4, he said, “There is certainly a little bit of a lag, a certain level of volatility from customers particularly in some sectors regarding discretionary spending, and there is a certain level of uncertainty clearly balanced by the volume of business that we win,” Delaporte said, adding that there is no slowdown in decision process.
Wipro’s operating margins stood at 16.3%, which is an expansion of 120 basis points from the last quarter.
“This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. We generated strong operating cash flows at 143% of our net income for the quarter and our EPS increased by 14.6% quarter-on-quarter,” said Jatin Dalal, chief financial officer, of Wipro.