Wipro Q4 Results: Large TCV up 9.5% YoY, Q1FY25 revenue guidance pegged at -1.5 to 0.5%; 5 key highlights

Wipro Q4 Results: Wipro announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Friday, April 19, reporting a decline of eight per cent in consolidated net profit at ₹2,835 crore. India's fourth-largest software services company's revenue from operations for the March quarter also dropped four per cent year-on-year (YoY) to ₹22,208.3 crore. 

“FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about opportunities that lie ahead. We are on the brink of a major technological shift. Artificial intelligence is transforming our clients’ needs as they seek to harness its power for competitive advantage and enhanced business value,'' said Srini Pallia, CEO and Managing Director, Wipro. 

Follow Wipro Q4 Results Live Updates: IT major posts net profit at ₹2,835 crore, revenue falls 4% YoY

Here are 5 key highlights of Wipro Q4 scorecard:

1.P&L Account: Profit, Revenue

Wipro's consolidated net profit dropped eight per cent to ₹ ₹2,835 crore, compared to ₹3,074.5 crore in the corresponding period last year. The information technology (IT) major's revenue from operations also fell four per cent to ₹ ₹22,208.3 crore, compared to ₹23,190.3 crore in the year-ago period. Revenue beat analysts' expectations on the back of firmer profit margins, strength in its healthcare business, and a recovery in its consulting business.

Aparna Iyer, Chief Financial Officer, Wipro said, “We expanded our margins by 40 basis points during the quarter resulting in EPS growth of 5.2 per cent QoQ in Q4. Despite a challenging macro-environment our IT services margin expanded by 50 basis points for the full year FY24. We generated highest operating cash flow in recent years which is at 183 per cent of our net- income in Q4 and 159 per cent on a full year basis.”

Also Read: Wipro Q4 results today: IT major expected to report muted earnings; FY25 guidance, new CEO's plans eyed

2.Deal Value

Wipro reported a large total contract value (TCV) at $1.2 billion for the fourth quarter ended March 31, which is up 9.5 per cent YoY and 31 per cent sequentially. The total bookings stood at $3.6 billion in the March quarter. For the entire fiscal 2023-24, the large deal bookings stood at $4.6 billion, up by 17.4 per cent YoY. Total bookings for FY24 came in at $14.9 billion, reporting a decline of 5.5 per cent YoY.

3.Revenue guidance

Wipro, the only one among the top IT companies to give a quarterly forecast, said it expects IT services revenue of $2.62 billion to $2.67 billion in the current quarter, indicating a sequential decline of 1.5 per cent to a growth of 0.5 per cent. ‘’We expect revenue from our IT Services business segment to be in the range of $2,617 million to $2,670 million. This translates to sequential guidance of (-)1.5 per cent to +0.5 per cent in constant currency terms,'' said Wipro in its regulatory filing to the stock exchanges.

4.Dividend

Wipro's board approved an interim dividend of Re 1 for fiscal 2023-24. ‘’The Board of Directors confirmed the interim dividend of Re 1 declared by the Board earlier at its meeting held on January 12th, 2024, shall be considered as the final dividend for the financial year 2023-24,'' said Wipro in its exchange filing. 

5.Attrition, headcount

Wipro reported a decline of 6,180 employees in the March quarter. Sequentially, Wipro's attrition rate remained flat at 14.2 percent on the last-twelve-month (LTM) basis. Wipro started FY24 with a total headcount of 2,58,570. It ended the fiscal with a total strength of 2,34,054 employees, down by 24,516 employees. This is also the sixth quarter in a row when the closing headcount has fallen for the IT firm and the second consecutive year of full-year headcount drop.

Other key announcements

Wipro board approved the re-appointment of Rishad A. Premji as Executive Chairman for a period of five years with effect from July 31, 2024 to July 30, 2029. It also approved the re-appointment of Azim H. Premji as Non-Executive, Non Independent Director for a period of five years with effect from July 31, 2024 to July 30, 2029, according to the statutory filing.

Ahead of the announcement of Q4FY24 results, shares of Wipro settled 1.92 per cent higher at ₹452.85 apiece on the BSE.