Wipro Q3 profit falls 12% to ₹2,694 cr; revenue dips 4.4%

IT major Wipro Ltd recorded an 11.7% fall in its net profit for the October-December quarter of 2023-24 at ₹2,694.2 crore as compared to ₹3,052.9 crore in the same quarter in the previous year, on revenue headwinds during the “seasonally soft” quarter. On a QoQ basis, Wipro's net profit surged 1.7% as it stood at ₹2,646.3 crore in the previous quarter of the fiscal year.

Wipro's revenue from operations reached ₹22,205.1 crore, down 4.4% as compared to ₹23,229 crore in the same period last year. The company's revenue dipped 1.3% as compared to ₹22,515.9 crore in the previous quarter.

The Wipro share closed 3.88% up at ₹465.45 on the BSE today.

The IT services segment’s revenue, meanwhile, stood at $2,656.1 million, a decrease of 2.1% QoQ, while the segment’s operating margin was 16%, down by 11 bps QoQ.

The Bengaluru-headquartered IT major's total bookings for Q3 FY24 were recorded at $3.8 billion, a marginal increase of 0.2% QoQ, while the large deal bookings stood at $900 million.

The IT services segment’s EBIT was ₹3,540 crore, a decrease of 1.8% QoQ. The earnings per share was ₹5.16, an increase of 2% on a quarter-on-quarter basis. The operating cash flows at 177.3% of net income for the quarter was at ₹4,790 crore.

Wipro’s “voluntary attrition” also moderated on a QoQ basis, coming in at a 10-quarter low of 12.3% in Q3’24. The company’s board has declared an interim dividend of ₹1 ($0.0121) per equity share/ADS. "The payment of interim dividend will be made on or before February 10, 2024,” says Wipro.

In its outlook for the quarter ending March 31, 2024, Wipro expects revenue from the IT services business segment to be in the range of $2,615 million to $2,669 million, the sequential guidance of -1.5% to +0.5% in constant currency terms.

“Our investments in people, processes, and business operations are continuing to pay off,” said Thierry Delaporte, CEO and managing director, Wipro. In a seasonally soft quarter, deal booking momentum remained strong, he adds. “Our large deals recorded a 20 percent year-to-date growth. Further, we are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business.”

The Wipro CEO says under the company’s ai360 strategy, AI is now embedded across most of its existing solutions and client offerings. “We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalize on emerging opportunities, as the macro environment improves.”

Aparna C. Iyer, chief financial officer, says the IT major is building a more resilient, agile, and efficient organisation, which has helped it sustain margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people.