Wipro Q4 net profit rises 27% to Rs 2,970 crore, 'best' result in a decade

Topics Wipro | Q4 Results

On the back of large deals and acquisitions, Delaporte hinted that for FY22 the company could deliver double-digit growth. The last time Wipro reported double-digit revenue growth was in FY16
Bengaluru-headquartered Wipro on Thursday reported consolidated net profit of Rs 2,970 crore in the fourth quarter ended March 31, 2021, an increase of 27.8 per cent year-on-year (YoY) and a 0.1 per cent rise sequentially.

Total revenue for the quarter grew 3.4 per cent at Rs 16,250 crore YoY, and was up 3.7 per cent sequentially. Not only were the numbers better than Bloomberg consensus estimates of Rs 16,097.1 crore (revenue) and Rs 2,892.8 crore (net profit), but the management commentary was also positive.

Thierry Delaporte, chief executive officer and managing director, termed the fourth quarter FY21 numbers the best ever for the company in the last decade.

On the back of large deals and acquisitions, Delaporte hinted that for FY22 the company could deliver double-digit growth. The last time Wipro reported double-digit revenue growth was in FY16.

“We are guiding for revenue growth of 2-4 per cent for the first quarter of FY22. This will translate into 11-13 per cent growth for the full year. This guidance reflects the environment that we are in, our focus on our market and improved execution rigour, and we are ready to take on the fight on talent,” said Delaporte.

The revenue guidance does not factor in the recent acquisition of Capco and Ampion.


IT services, tracked by the Street widely, reported revenue of Rs 15,892 crore, growing 3.9 per cent sequentially.

The operating margin for IT services business for the quarter was 21 per cent, a drop of 0.7 per cent on a quarterly basis, but improved 344 basis points YoY. The YoY increase in margins were led by a 3.8 per cent reduction in costs to Rs 10,981 crore.

“We delivered a third consistent quarter of strong revenue growth, deal wins, and operating margins. We also announced our largest ever acquisition of Capco, which will bolster our global financial services sector. All key markets are now growing on a YoY basis and this provides us a solid foundation to build on next year growth rates,” said Delaporte.

He added the company would not shy away from acquisition.

The company saw a robust deal pipeline in Q4 with over $1.4 billion in 12 large deals.

“Recent restructuring efforts, which include simplified operating structuring, a step-up in capability upgrade, and talent management bode well for Wipro in the medium term,” said Suyog Kulkarni, senior research analyst, Reliance Securities.


The quarter performance was healthy wherein margins have improved. A healthy revenue guidance prompt us to be positive on the stock, said analysts at ICICI Direct in their first cut analysis.

The results came post market hours. But, Wipro’s ADR surged over 7 per cent in early trades. It was up 5.5 per cent at 9.40 pm India time.

For the full year, the company reported revenue of Rs 61,940 crore, an increase of 1.5 per cent YoY.

IT services revenue was at $8.1 billion, a drop of 1.4 per cent.

Growth for the quarter was led by BFSI (banking, financial services, and insurance), which grew 2.7 per cent quarterly in constant currency terms, while consumer grew 6.9 per cent, health was down 2.9 per cent, technology was up 9.9 per cent, and manufacturing was down 1.1 per cent.

“We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hikes. 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 completed the share buyback programme, returning $1.3 billion to our shareholders,” said Jatin Dalal, chief financial officer.

Attrition for the quarter was up 12 per cent. The company said it had announced salary hikes for 80 per cent of its employees and there would be another one in the coming quarter.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel