Wipro hires 15,446 employees in Q1, attrition rate inches lower to 23.3%

Wipro has made one of the highest hiring in the June 30, 2022 (Q1FY23) quarter compared to its peers like TCS and HCL Tech. Infosys is yet to announce its quarterly result. On Wednesday, Wipro presented its Q1FY23 earnings. The company added a net headcount of 15,446 in Q1 compared to the preceding quarter. The company's attrition rate is at 23.3% in Q1FY23 lower than 23.8% in Q4FY22.

As of June 30, 2022, Wipro's employees headcount is 258,574 compared to 243,128 employees as of March 31, 2022. From the total, under sales and support staff (IT Services), the company hired 115 employees to 17,806 headcounts compared to 17,691 headcounts in Q4FY22.

Compared to its peers, Wipro's hiring is higher. In Q1FY23, HCL Tech's total employees count stood at 210,966 rising by 2,089 employees from 208,877 count in March 2022 quarter. For the quarter, HCL Tech's attrition (LTM) climbed to 23.8% in Q1FY23 versus 21.9% in Q4FY22 and 11.8%.

Meanwhile, TCS headcount stood at 606,331 - a net addition of 14,136 during the quarter compared to March 2022 period. The company's IT services attrition was 19.7% on the last twelve months basis.

Wipro announced a consolidated net profit of ₹2,563.6 crore compared to ₹3,242.6 crore in the same period last year. Sequentially, the company's PAT dropped by 16.96%.

Meanwhile, consolidated revenue was at ₹21,528.6 crore in Q1FY23 up by 17.9% from ₹18,252.4 crore in Q1FY22, and higher by 3.2% from ₹20,860 crore in Q4FY22. In dollar terms, IT Services Segment revenue stood at $2,735.5 million, an increase of 13.3% yoy. Non-GAAP constant currency IT Services segment revenue increased by 2.1% qoq and 17.2% yoy. IT services operating margin for the quarter was at 15.0%, a decrease of 200 bps qoq.

Thierry Delaporte, CEO and Managing Director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization while staying focused on serving our clients even better.”

For Q2FY23, Wipro expects revenue from its IT Services business to be in the range of $2,817 million to $2,872 million. This translates to a sequential growth of 3% to 5%.

On BSE, Wipro shares closed at ₹412.20 apiece up by ₹6.60 or 1.63%. Its market cap is around ₹2,25,983.47 crore.