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Thursday 14 January 2021

Wipro picks up the pace in Europe

LogoWipro has delivered a second successive quarter of sequential top line growth as the company continues to recover from the impacts of the pandemic. Revenue in Q321 (the three months to 31st December) was $2.07b, up 3.4% qoq on a constant currency basis. This, however, represented a 2% decline in turnover compared with the same period in the prior year. Operating margin improved for the third quarter in a row hitting 21.7% and adding a further 250 bps to the Q221 level.

All of the offshore major’s target industry verticals have now returned to qoq expansion. The company’s Health and Technology business units, which together accounted for over 26% of Wipro’s global turnover last quarter, were also back in positive yoy growth territory in Q3.

From a regional perspective it was Wipro Europe that delivered the strongest performance. Sales in this region increased by a hefty 8.6% qoq on a constant current basis to $522m, up 1.4% yoy. The company also closed its largest ever deal win in Continental Europe during Q321.

Looking ahead, Wipro expects that Q421 revenues will fall somewhere between $2.1b and $2.14b. Hitting the top end of this range would result in a small full year yoy top line increase. This would be a very respectable performance within the context of the events of the last twelve months. It would, however, also be some distance off the pace of IPP Tier 1 peer group rival Infosys which expects to achieve growth of at least 4.5% over the same period (see here).

Posted by: Duncan Aitchison

Tags: results   offshore   systemsintegration   IPP  

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