Wipro Q4 Results: Voluntary attrition at 14.2% as IT major posts net profit of ₹2835 crore

Wipro reported a net profit of ₹2835 crore during the final quarter of FY24.  Data released on Friday indicates that voluntary attrition stood at 14.2% on a trailing 12-month basis. The IT major saw its headcount shrink by 6,180 employees in Q4FY24 and by 24,516 on a full-year basis.

The decline was attributed to weak demand environment and push for operational efficiency in the company. Newly appointed CEO Srinivas Pallia said that it was a matter of immediate priority for Wipro to “accelerate growth”. He also acknowledged that FY24 had proved to be a challenging year for the industry with the “macroeconomic environment” continuing to remain uncertain. Pallia cautioned that “there may be more challenges in the short term”.

Wipro has also seen several key executives depart in recent months — including the exit of CEO Thierry Delaporte earlier this month and Stephanie Trautman (who was in charge of securing large contracts) in December.

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The Bengaluru-based company saw its consolidated revenue decrease 4.2% to ₹222.08 billion during the January-March quarter. Wipro — the only major IT company to share a quarterly forecast — also said that expected IT services revenue of $2.62 billion to $2.67 billion in the current quarter (indicating a sequential decline of 1.5% to a growth of 0.5%).

While the numbers were in line with the analysts' estimates, the guidance of the company was below industry expectations.

“We expect revenue from our IT Services business segment to be in the range of USD 2,617 million to USD 2,670 million. This translates to sequential guidance of (-)1.5 per cent to 0.5 per cent in constant currency terms,” the company said in its forecast for Q1FY25.

(With inputs from agencies)