Wipro Q1 results: Earns consolidated PAT of ₹2,870 crore, rising by 12%; key highlights here
Wipro Q1 results: Net profit rises 11.95% YoY to ₹2,870.1 crore, revenue grows 6% YoY. Company maintains new business momentum despite reduced discretionary spending. IT Services revenue expected to decline by 2.0% to grow by 1.0% in Q2.
Wipro Q1 results: Azim Premji-backed Wipro missed street estimates in the quarter ending June 30, 2023 (Q1FY24) period. The IT giant earned a consolidated net profit (attributed to owners) of ₹2,870.1 crore in Q1, rising by 11.95% from a profit of ₹2,563.6 crore in the same quarter a year ago. However, revenue saw a single-digit growth of 6% YoY. Wipro said despite a gradual reduction in clients’ discretionary spending, it maintained its new business momentum.
On the top-line front, Wipro posted revenue from operations to ₹22,831 crore in Q1FY24, recording a growth of 6.05% from ₹21,528.6 crore in Q1 of the previous fiscal.
However, sequentially, Wipro's both PAT and revenue declined by 6.65% and 1.55% respectively as against ₹3,074.5 crore and ₹23,190.3 crore in Q4FY23.
Further, Wipro's IT services segment revenue saw a gradual rise of 0.8% YoY in dollar terms to $2,778.5 million. In rupee terms, the growth was at 6.1% YoY in Q1.
The tech major's non-GAAP constant currency IT Services segment revenue decreased by 2.8% QoQ, increased
1.1% YoY. Meanwhile, IT services operating margin for the quarter came in at 16%, expanding by 112 basis points YoY.
Thierry Delaporte, CEO and Managing Director said, "Wipro’s first-quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins."
He added, "Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum."
The company's total bookings were at $3.7 billion and large deal bookings stood at $1.2 billion, up by 9% YoY.
Jatin Dalal, Chief Financial Officer, said, “Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating
Margin for the first quarter was 16% an expansion of 112 basis points YoY. We generated strong operating cash flows at 130% of our net income for the Quarter. EPS for the quarter grew by 11.5% YoY.”
However, Wipro let go of 8,812 employees in Q1FY24, taking its total headcount to 249,758 people compared to a headcount of 258,570 people by the end of FY23. Also, the company's voluntary attrition rate for IT services excluding DOP continued to decline and stood at 17.3% in Q1FY24. Wipro said, "Voluntary attrition has continued to moderate QoQ, coming in at an 8-quarter low of 14% in Q1’24."
Wipro expects IT Services business segment revenue to be in the range of $2,722 million to $2,805 million. This translates to sequential guidance of -2.0% to +1.0% in constant currency terms.
On BSE, Wipro shares ended at ₹394.35 apiece, up by 0.70% on Thursday.
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