5paisa Research Team
Swiggy Reports ₹625.5 Cr Net Loss in Q2 Despite Revenue Growth
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5paisa Research Team
3rd Dec 2024
Wipro Share Q3 Results
Among the big bulge bracket IT companies, Wipro came under pressure with operating margins and net margins taking the biggest dent. This was largely on account of a sharp spike in sub-contracting costs, higher employee costs as well as higher input costs for its hardware IT products division. Overall, costs pinched operating profits in a big way. Here is a gist of the numbers for the Dec-21 quarter.
|
Rs in Crore |
Dec-21 |
Dec-20 |
YOY |
Sep-21 |
QOQ |
|
Total Income (Rs.cr) |
₹ 20,314 |
₹ 15,670 |
29.63% |
₹ 19,667 |
3.29% |
|
Operating Profit (Rs.cr) |
₹ 3,442 |
₹ 3,336 |
3.18% |
₹ 3,398 |
1.32% |
|
Net Profit (Rs.cr) |
₹ 2,969 |
₹ 2,968 |
0.03% |
₹ 2,931 |
1.31% |
|
Diluted EPS (Rs.) |
₹ 5.42 |
₹ 5.17 |
₹ 5.35 |
||
|
OPM |
16.95% |
21.29% |
17.28% |
||
|
Net Margins |
14.62% |
18.94% |
14.90% |
As can be seen in the above table, Wipro revenues were up a healthy 29.63% for the Dec-21 quarter at Rs.20,314 crore on a consolidated basis. In sequential terms, the revenues were up by 3.29% but the real story lies in the bottom line to which we will come back to later.
During the December 2021 quarter, the region of the Americas accounted for 58% of the total revenues in IT services. The European region comprising of UK and continental Europe accounted for 30% while the balance 12% was accounted for by the APMEA region; which is the Asia Pacific, Middle East and Africa region.
Operating profits grew by a measly 3.18% YoY at Rs.3,442 Cr in the Dec-21 quarter. The pinch came from the manpower costs and the sharply higher sub-contracting expenses during the quarter. The input costs in the IT products business also saw spike.
As a result, the operating margins fell very sharply from 21.29% in the Dec-20 quarter to 16.95% in Dec-21 quarter, a fall of 434 basis points This was largely on account of static operating profits amidst sharply higher sales revenues. Operating profits were up just about 1.3% on sequential basis compared to Sep-21 quarter.
Profit after tax (PAT) for the Dec-21 quarter was almost flat, up by just about 0.03% at Rs.2,969 crore due to the impact of higher operating and non-operating costs in the quarter getting transmitted to the bottom line. As a result, the PAT margins narrowed from 18.94% in the Dec-20 quarter to 14.62% in the Dec-21 quarter. The board has declared an interim dividend of Rs.1 per share, but the real story was all about operating pressures.
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