Wipro Hits its Highest Margin in Over Five Years

IT service major Wipro had given a thundering performance in its third-quarter earnings. This has been the result of its business growth across verticals and geographies. Alongside, the IT firm has further reported a increase of about 20.8 percent in its profit, while the revenue has raised by 3.4 percent on a constant currency basis.

However, the company's margins have come in at a 22-quarter high, stretching by 243 basis points to 21.7 percent. This expansion was led by improved revenue growth trajectory and excellence in operations. However, 100 basis points make up for one percent. Furthermore, the IT services giant has maintained its dollar revenue growth guidance for the March quarter in the range of 1.5-3.5 percent.

Thierry Delaporte, CEO and Managing Director, Wipro says, “Wipro has delivered a second consecutive quarter of strong performance on order booking, revenue and margins. Five of our sectors grew over 4 percent sequentially. We closed our largest ever deal win in Continental Europe.”

The company's strong performance in the December quarter had an impact on its share price as well. Alongside, it's share price has raised by more than 23 percent in the quarter. As of market closing on January 13, its share price has gained about 47 percent since the beginning of the December quarter.

However, the company's attrition levels remained unchanged from the September quarter right at 11 percent. Although, its headcount has raised over 1.9 lakh employees, adding more than 5,000 to its September quarter count.

Lately, Wipro had announced a share buyback plan at Rs.400 apiece, with a total outlay of Rs.9,500 crore.

The company has also signed a $700-million deal with Metro AG, a German food services company, with the intension to take over its IT operations for five years. The deal is expected to have the potential to go up to $1 billion if streched by another four years.