Wipro Q3 Earnings: 24.5% Profit Jump, IT Services Margins Hit 12-Quarter High, Boosts Interim Dividend Payout to 70%

Benzinga
17 Jan

Wipro Ltd  (NYSE:WIT) reported third-quarter gross revenue of 223.2 billion rupees ($2.61 billion), up by 0.5% year-on-year, missing the analyst consensus estimate of $2.60 billion. 

IT Services revenue declined by 1.0% Y/Y to $2.63 billion. EPS of 4 cents beat the analyst consensus estimate of 3 cents.

Also Read: IBM, Globant, EPAM Top IT Bets For 2025, Driven by Demand Trends And Margin Expansion: Analyst

Adjusted constant currency IT Services segment revenue decreased by 0.7% Y/Y.

IT Services' operating margin for the quarter was 17.5%, up by 150 bps Y/Y, reaching a twelve-quarter high. 

Net income was 33.5 billion rupees ($392.0 million), up 24.5% Y/Y. Operating cash flow was at 49.3 billion rupees ($576.4 million).

Total bookings stood at $3.51 billion, with large deal bookings worth $961 million, up by 6.0% Y/Y.

Interim Dividend: Wipro declared an interim dividend of $0.0701 per ADS, proposing to ramp up the payout percentage from 45%- 50% to 70% or above of the net income.

CEO and managing director Srini Pallia noted that the company has accomplished its highest margins in the past three years in a seasonally weak quarter and closed 17 large deals with a total value of $1 billion.

Q4 Outlook: Wipro expects IT Services business revenue of $2.602 billion–$2.655 billion, (-1.0)% to (+1.0)% Q/Q in constant currency terms. 

Price Action: WIT stock was up 0.91% at $3.33 premarket at last check Friday.

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