Wipro shares declined nearly 5% to Rs 657.50 on BSE at 9:40 am after reporting flat Q3 results.

Wipro Ltd recorded a net profit of Rs 2,970 crore in the fiscal third quarter (Q3 2021-22) on January 12, up from Rs 2,931 crore in the previous quarter ended on September 30.

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The net profit was about the same as compared to the same quarter in the prior fiscal year. In the previous fiscal year, the firm had a profit of Rs 2,968 crore.

The revenue in Q3 FY22 was Rs 20,432.3 crore, which was higher than the previous quarter’s revenue of Rs 19,667 crore. The figures also represent a 30% year-on-year increase, as Wipro posted a revenue of Rs 15,670 crore in the same time last year.

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Earnings before interest and taxes (EBIT) for the third quarter of fiscal year 22 were Rs 3,553.5 crore, compared to Rs 3,560 crore anticipated in a CNBC-TV18 poll.

“Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 mn revenue league, in the last 12 months,” the company’s CEO and Director Thierry Delaporte said.

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Wipro further stated in the regulatory filing that its board has declared an interim dividend of Re 1 per equity share.

“We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income,” Jatin Dalal, Wipro’s Chief Financial Officer, said.

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Wipro estimates revenue from its IT Services division to be in the $2,692 million to $2,745 million range in Q4, representing a two to four per cent sequential increase.