Wipro gains as Q4 PAT rises 5% QoQ to Rs 2,835 cr
(11:36, 22 Apr 2024)

Revenue from operations rose marginally to Rs 22,208.3 crore in the March quarter as against Rs 22,205.1 crore reported in the preceding quarter same year.

On year on year (YoY) basis, the IT firm?s net profit slipped 7.8% and revenue declined 4.23% in Q4 FY24.

Profit before tax was at Rs 3,862.2 crore in quarter ended 31 March 2024 (up 8.73% quarter on quarter (QoQ) and down 3.89% YoY).

In dollar terms, Wipro's gross revenue stood at $2.7 billion in Q4 FY24. IT services segment revenue was at $2,657.4 million, up 0.1% QoQ and down 6.4% YoY.

IT services operating margin for the quarter was at 16.4%, up by 40 bps QoQ. Non-GAAP constant currency IT services segment revenue declined 0.3% QoQ and 6.6% YoY.

For the quarter ending 30 June 2024, Wipro expects revenue from its IT Services business segment to be in the range of $2,617 million to $2,670 million. This translates to sequential guidance of -1.5% to +0.5% in constant currency terms.

During the quarter, the IT company's total bookings was at $3.6 billion, registering a decline of 4.85% QoQ and 13.54% YoY. Large deal bookings was at $1.2 billion, increase of 31.1% QoQ and 9.5% YoY

The company said that its closing employee count in IT Services stood at 234,054. Voluntary attrition was at 14.2% on a trailing 12-month basis.

For FY24, the IT firm?s consolidated net profit declined 2.69% year on year to Rs 1,1045.2 crore. Revenue fell marginally to Rs 89,760.3 crore in FY24 as against Rs 90,487.6 crore reported in FY23.

Srini Pallia, CEO and managing director, said ?FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. We are on the brink of a major technological shift. Artificial intelligence is transforming our clients? needs as they seek to harness its power for competitive advantage and enhanced business value.?

Aparna Iyer, chief financial officer, said ?We expanded our margins by 40 basis points during the quarter resulting in EPS growth of 5.2% QoQ in Q4. Despite a challenging macro-environment our IT services margin expanded by 50 basis points for the full year FY24. We generated highest operating cash flow in recent years which is at 183% of our net- income in Q4 and 159% on a full year basis.?

Aparna C. Iyer, chief financial officer, said, ?I am pleased with our rigor of execution across all financial metrics- revenue, margin, EPS, and cash flow. We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people.?

Meanwhile, the company?s board has approved the re-appointment of Rishad A. Premji as whole-time director designated as executive chairman for a period of 5 years with effect from 31 July 2024 to 30 July 2029.

Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.

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