Wipro posts consolidated PAT of ₹3,074.5 cr in Q4, revenue rises 11% YoY, declares buyback

Azim Premji-backed Wipro has posted a mixed performance in terms of profitability for the quarter ending March 31, 2023 (Q4FY23). The IT giant posted a consolidated net profit of ₹3,074.5 crore in Q4FY23, which is a couple of crores lower than a profit of ₹3,087.3 crore a year ago same period. However, Q4 PAT inched up by 0.71% from ₹3,052.9 crore in the preceding quarter. These profits are attributable to the owners of the company.

Consolidated revenue from operations came in at ₹23,190.3 crore in Q4FY23, registering a growth of 11.2% from ₹20,860 crore in the same quarter last year. Revenue however is marginally down from ₹23,229 crore in December 2023 quarter.

Further, in the quarter, the company's IT services segment revenue stood at $2,823.0 million, an increase of 0.7% QoQ and 3.7% YoY. Non-GAAP constant currency IT Services segment revenue decreased by 0.6% QoQ but saw a surge of 6.5% YoY.

Also, IT Services' operating margins for the quarter were at 16.3%, broadly flat sequentially.

Jatin Dalal, Chief Financial Officer, said, “We continue to maintain our focus on operational improvements and productivity enhancements which led to our IT services margin exit at 16.3% in Q4 despite macro headwinds. We generated strong operating cash flows at 121% of our net income for the Quarter."

During the quarter, Wipro's total bookings zoomed by 29% and large deal bookings recorded a whopping 155% YoY growth.

Also, the tech player's operating cash flows at 120.6% of Net Income for the quarter was at ₹37.3 billion -- a rise of 60% YoY.

But Wipro recorded a decline of 330 bps in voluntary attrition from the previous quarter, landing at 14.1% on a quarterly annualized basis and at 19.2% on a trailing twelve months basis.

For full-year FY23, Thierry Delaporte, CEO, and Managing Director, said, “We closed FY23 with the strongest-ever bookings recorded in a year. We delivered two consecutive quarters of total bookings of over $4.1 billion. Our large deal order booking grew by 155% year-over-year for the quarter. We are also pleased to announce our share buyback, which is part of our philosophy to deliver consistent returns to shareholders."

Overall, in FY23, Wipro's PAT is around ₹11,350 crore down by 7.2% from ₹12,229.6 crore in the previous fiscal. However, revenue jumped by 14.40% to ₹90,487.6 crore in FY23 as against ₹79,093.4 crore witnessed in FY22. Also, IT Services segment revenue increased to $11,159.7 million, an improvement of 7.8% YoY

Compared to just a few years ago, Delaporte said, "We are seeing a visible change in the structure of our deals and our market position. We are winning large transformation deals, benefitting from a consolidating market, and deepening relationships with existing clients.”

He added that Wipro has built a strong foundation to sustain through this period of increased uncertainty.

In a meeting held on Thursday, Wipro's board of directors approved a buyback of ₹12,000 crore. 

Read 10 key highlights of the buyback!

For FY24, Wipro is expecting revenue from the IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million. This translates to sequential guidance of -3.0% to -1% in constant currency terms.

On BSE, Wipro's stock price ended at ₹374.35 apiece, flat compared to the previous session's print. The company's market cap is over ₹2.05 lakh crore.