Wipro Reports Significant Profit Rise Despite Seasonal Challenges

Wipro, a leading IT services company, reported a notable 24.4% year-on-year increase in consolidated net profit for the December quarter. Despite marginal revenue growth, the firm anticipates stable guidance for the March quarter. The revised capital policy ensures a payout of 70% or above over three years.

Wipro, a prominent player in the IT services sector, has announced a 24.4% rise in its consolidated net profit for the December quarter, reaching approximately Rs 3,354 crore. Despite a modest 0.5% increase in revenue from operations, the Bengaluru-based tech giant maintains a cautiously optimistic outlook for the upcoming March quarter.

In anticipation of the March quarter, Wipro foresees revenue from its IT services business fluctuating between USD 2,602 million to 2,655 million. This mirrors a potential shift of 1% decline to a possible 1% growth, according to its regulatory filing. The company has declared an interim dividend of Rs 6 per share, while revising its capital allocation policy to ensure a committed payout of 70% or above over a three-year period.

CEO Srini Pallia credited robust quarter execution for outperforming revenue guidance during a typically slow seasonal period. In addition, Wipro has secured 17 large deals valued at USD 1 billion. CFO Aparna Iyer highlighted the expansion of margins for the fourth consecutive quarter and expressed satisfaction with meeting the targeted margin of 17.5%.

(With inputs from agencies.)