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Business News/ Markets / Stock Markets/  Wipro vs HCL Tech Q3 earnings: 5 most important comparisons you should know
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Wipro vs HCL Tech Q3 earnings: 5 most important comparisons you should know

The revenues of Wipro came in at ₹22,205 crore in Q3, indicating a 4.4% YoY drop, while HCL Tech reported consolidated revenue of ₹28,446 crore in Q3, reflecting a 6.5% YoY growth.

HCL Tech posted a net profit growth, with a significant 13.5% QoQ surge. (Pixabay)Premium
HCL Tech posted a net profit growth, with a significant 13.5% QoQ surge. (Pixabay)

Wipro and HCL Tech have both released their Q3 FY24 numbers today in line with street estimates. However, HCL has outperformed Wipro across various metrics, including revenue and profit growth.

Let's delve into five key comparisons between these two IT majors.

Revenue Growth: The revenues of Wipro came in at 22,205 crore in Q3, indicating a 4.4% decrease compared to the revenue of 23,229 crore reported in the corresponding period last year. Sequentially, revenue also saw a 1.4% drop. In constant currency, revenue dropped by 1.7% QoQ and 6.9% YoY.

Contrastingly, HCL Tech reported consolidated revenue of 28,446 crore for the quarter ending in December, reflecting a 6.5% YoY growth. On a sequential basis, HCL observed a 6.7% increase in revenue. In constant currency terms, the revenue grew by 6% QoQ and 4.3% YoY.

Also Read: Wipro Q3 Results: PAT down 12% YoY to 2,694 crore, revenue drops 4.4% YoY. All you need to know

Net Profit Growth: HCL Tech posted a net profit growth, with a significant 13.5% surge to 4,350 crore in Q3 FY23, compared to the preceding quarter's 3,832 crore. On a YoY basis, there was a 6.2% improvement, surpassing the net profit of 4,096 crore in the same quarter a year ago.

Wipro, on the other hand, reported a consolidated net profit of 2,694 crore in Q3 FY24, registering a modest 1% QoQ increase but posting a notable 12% decline on a YoY basis.

Also Read: HCL Tech Q3 results: Board approves interim dividend of 12 per share. Check record date

Deal Wins: During Q3 FY24, Wipro reported total bookings of $3.8 billion in constant currency, registering a marginal 0.2% increase QoQ but indicating a significant 13.5% YoY decline. Large deal bookings amounted to $0.9 billion in Q3 FY24, marking an 8.3% YoY decrease.

In comparison, HCL Tech secured new deal wins totaling $1.9 billion in the third quarter, which included 18 large deals.

Workforce Dynamics: Wipro experienced a net reduction of 4,473 employees in Q3, concluding the quarter with a workforce of 240,234. The voluntary attrition rate showed a quarter-on-quarter moderation, reaching a 10-quarter low of 12.3% in Q3 FY24.

Also Read: Infosys, TCS stocks help Nifty 50 hit all-time high again

In contrast, HCL added 3,617 people in Q3 FY24, bringing its total workforce to 2,24,756. Attrition dropped to 12.8% from 21.7% in the same period last year.

Client Metrics: In the December quarter, the number of clients exceeding $100 million for Wipro rose to 22, compared to 19 in the same of previous quarter. However, on a QoQ basis, it remained flat. Additionally, deals valued above $75 million increased to 31 from 28 in Q3 FY23, representing a QoQ improvement of 3.

As of Q3FY24, the firm boasts an active client base of 1,349, with the top 10 clients contributing to 20.5% of the company's revenue.

HCL witnessed a rise in the number of clients exceeding $100 million to 20 from 17 in Q3 FY23 on a YoY basis, although it remained flat on a sequential basis. For HCL Tech, the top 10 clients account for 17.7% of its revenue.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 12 Jan 2024, 08:19 PM IST
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