Wipro and Infosys slip

about 11 days ago
No Image

Wipro truly surprised one and all by posting one of its strongest earnings in recent years. It reported a 4% (QoQ) surge in consolidated revenue at Rs.15,670 crore for Q3FY21. More importantly, its revenue from IT services met the company’s guidance of 1.5 to 3.5% growth at $2071 million.

Its net profit for the quarter rose 20% at Rs.2967 crore, EBIT rose 17% at Rs.3320 crore and margins increased from 19.20% to 21.65%.

Giving its guidance for Q4FY21, the company expects its IT services revenue to increase by 1.5 to 3.5% (QoQ), which translates into $2,102-$2,143 million.  

The company has announced an interim dividend of Rs 1 per equity share of par value Rs 2 each to the members of the company as of January 25, 2021, being the record date. The payment of the interim dividend will be made on or before February 2, 2021.

But profit booking came in the stock after rising ahead of the numbers. The stock today morning opened lower and slipped over 6%, going down to Rs.431 though it has recovered and is trading at 446 levels.

Ditto with Infosys too. The company also  presented a great set of earnings for Q3FY21, beating all estimates and more significantly, the reason why the market is actually jubilant – upped the guidance.

The company revised upwards its full-year, FY21, constant currency revenue growth guidance to 4.5 to 5%, up from 2-3% given earlier and operating margin guidance to 24 to 24.5%, up from 23-24% given earlier.

Its revenue rose over 5.5% (QoQ) to Rs.25,927 crore and dollar revenue was up 6% at $3516 million Constant currency revenue was up 7%.

Its net profit rose over 7% to Rs.5197 crore while operating income was up 6% at Rs.6589 crore. EBIT margins remained steady despite salary hikes and currency fluctuations at 25.4% v/s 25.3%.

But Infosys is also in the red, going down over 5% to Rs.1318.05.

Popular Comments

No comment posted for this article.