Wipro’s board of directors said on Friday that the interim dividend of Rs 1 and Rs 5 has been decided by the board at its meetings on January 14 and March 25, 2022
will be considered the final dividend for the 2021-22 financial year. This comes on the heels of its colleagues TCS, Infosys and HCL Tech also announced their respective final dividends, along with the results from the end of March.
Wipro reported a 4 percent sequential increase in its consolidated net profit to Rs 3,087.3 crore for the quarter ended March, which was in line with analyst expectations. The consolidated revenue of the Bengaluru-based company rose just 0.3 percent on a quarterly basis to Rs 20,860.7 crore for the reported quarter.
Operating income during the said quarter was Rs 20,860 crore, up 28.40 percent from Rs 16,245.4 crore in the same quarter a year ago. In dollar terms, IT Services segment revenue was $2,721.7 million, up 3.1 percent quarter on quarter and 26.4 percent year on year. IT services segment revenue in constant currency increased 3.1 percent quarter on quarter and 28.5% year on year.
“We had an excellent year with revenue of $10.4 billion and industry-leading growth of 27 percent year-over-year. This is our sixth consecutive quarter of strong revenue growth of 3 percent or more,” said Thierry Delaporte, chief executive officer and managing director in a statement.
“With all markets, sectors and Global Business Lines growing at double digits each year, we have a strong foundation for next year’s growth,” added Delaporte.
Wipro added 45,416 employees for the year ended March 31, 2022, a multiple jump of 14,826 people added in FY21 as talent demand soared amid the shift to digital and attrition spikes. The company shared in an earlier earnings call that it plans to hire 17,000 freshmen in FY22, more than 9,000 it had hired in FY21. Wipro will hire nearly 30,000 campus recruits in FY23. This is intended to address rising churn and build the supply chain, even as demand remains robust.
However, the turnover is clearly a worrying trend. Company churn rose to 23.8 percent in Q4 FY22, from 15.5% at the start of the fiscal year.
Jatin Dalal, Chief Financial Officer said in a statement: “Our client mining efforts have resulted in the addition of eight clients in a bucket of more than $100 million year-over-year. We achieved operating margins of 17.7 percent for the year, following significant investments in solutions, capabilities and talent, net income for the year was the highest ever at $1.6 billion.”
The company has made significant acquisitions since Delaporte took charge in July 2020. To date, the company had made nearly 10 acquisitions, including Capco’s largest-ever acquisition for $1.45 billion and Rizing for $540 million.
On April 29, shares of Wipro closed 2.8 percent at Rs 508 on the National Stock Exchange (NSE).
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