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    Management commentary: Margins will remain elevated but lower than Q3, says Wipro

    earnings | IST

    Management commentary: Margins will remain elevated but lower than Q3, says Wipro

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    IT services major Wipro on Wednesday posted an about 21 percent jump in consolidated net profit at Rs 2,968 crore for the December 2020 quarter. The company logged 3.9 percent quarter on quarter growth in IT services revenue, the "highest in 36 quarters". Overall, the revenue from operations grew nearly 1.3 percent to Rs 15,670 crore as compared to the corresponding period of the previous year.

    IT services major Wipro on Wednesday posted an about 21 percent jump in consolidated net profit at Rs 2,968 crore for the December 2020 quarter. The company logged 3.9 percent quarter on quarter growth in IT services revenue, the "highest in 36 quarters". Overall, the revenue from operations grew nearly 1.3 percent to Rs 15,670 crore as compared to the corresponding period of the previous year.
    At the back of this performance, shares of Wipro declined today over 6 percent as investors booked profits at higher levels.
    The dollar revenue growth came at a 36-quarter high, while the EBIT margins are at 22 quarter high. Their guidance for the March quarter also suggests that the growth momentum is very much intact.
    CNBC-TV18’s Mugdha Variyar caught up with the management to understand what led to the strong quarterly performance and a picture of the internal functioning of the company after the organisational restructuring.
    On Q4 margins Jatin Dalal, CFO of Wipro said, “We don’t guide on margins, but we are making significant investments in sales capability, in hiring, in the domain, and in consulting. These are headwinds and therefore we will see a lower number for Q4, but we have certain benefits which are continuing, we also have a greater offshore mix that we have improved over the last four quarters. So some of those benefits will continue and hence we believe that margins will still remain at an elevated level though it will be lower than what it is for Q3.”
    On hiring Saurabh Gohil, CHRO at Wipro said, “Majority would happen in Q4, but there could be a spillover in Q1. These will be external hiring’s, people who are internal have already been allocated to the new role which is there.”
    On Europe growth, Thierry Delaporte, CEO of Wipro said, “There is no doubt that there is an impact of COVID in Europe and in most of the countries. It is very clear that we are living in for the last quarter that is impacting the European markets having said that in our industry the momentum is actually good.”
    Catch the full management commentary in the video
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