InvestorQ : Did you see improvement in the quarterly results of Wipro for the Dec-20 quarter?
shrinidhi Rajan made post

Did you see improvement in the quarterly results of Wipro for the Dec-20 quarter?

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3 months ago
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Wipro was another technology stock that managed to beat the street in Q3 with net profit 21.71% yoy at Rs.2,998 crore. This is much better than street estimates. Turnover was almost flat growing just about 1.3% at Rs.15,670 crore. However, on a sequential basis, the revenues of Wipro were up 3.8%.

The big story was on OPM as operating profits were up 25.7% at Rs.3,336 crore on better cost management. The operating margin or OPM expanded from 17.16% in Dec-19 quarter to 21.29% in Dec-20 quarter, one of the best OPM for Wipro in recent times. PAT was also up 22% at Rs.2,998 crore resulting in PAT margins expanding 320 bps to 19.13%.

For the quarter, the improvement in OPM to 21.3% is still below Infosys and TCS but is a positive signal. Wipro also gave solid guidance of revenues growing at 1.5% to 3.5% in the Mar-21 quarter. Most of the major verticals of Wipro have shown sequential growth of above 4% and that is a big positive takeaway for the company.

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