Wipro Q4 results: Profit rises 5.8% QoQ to ₹2,858 crore, revenue remains flat

Indian IT major Wipro reported a 5.8% quarter-on-quarter (QoQ) rise in Q4 net profit to ₹2,858 crore. Its consolidated revenue remained flat at ₹22,208 crore compared to ₹22,205 crore in the previous quarter. Wipro Q4 net profit and revenue was in-line with market estimate.

For the financial year ended 31 March 2024, Wipro reported a 2.2% year-on-year (YoY) decline in net profit to ₹11,112 crore and a 0.8% YoY decrease in its consolidated revenue to ₹89,760 crore.

Wipro share price reaction

Ahead of Q4 result announcement, Wipro shares closed 1.74% higher, with a day high of ₹453.9 per share on NSE. As the results were announced after market hours, the exact impact will be seen on 22 April.

Deal wins and operating margin

For the financial year ended 31 March 2024, Wipro total deal bookings stood at $3.6 billion. Large deal bookings were at $1.2 billion, an increase of 31.1% QoQ and 9.5% YoY. Wipro operating margin improved sequentially by 40 basis points to 16.4% during the fourth quarter.

Wipro Q1FY25 guidance

Wipro expect revenue from our 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.

Attrition rate

Wipro saw a net reduction of 6,180 employees during the quarter. As a result, its total employee count as of March 31 stood at 234,054. The trailing 12-month attrition rate remained at the same level as in the preceding quarter at 14.2%.

Wipro dividend announcement

Wipro Q4 dividend: The IT major has declared an interim dividend of ₹1. The dividend was declared by the Board earlier at its meeting held on January 12th, 2024, shall be considered as the final dividend for the financial year 2023-24.

Management commentary

Srini Pallia, CEO and Managing Director, said “FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about the opportunities that lie ahead. 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 the highest operating cash flow in recent years which is at 183% of our net- income in Q4 and 159% on a full year basis.”

The board approved the reappointment of Rishad A. Premji as Executive Chairman for a period of five years with effect from July 31, 2024, to July 30, 2029. It also approved reappointment of Azim H. Premji as Non-Executive, Non-Independent Director for a period of five years with effect from July 31, 2024, to July 30, 2029, according to a statutory filing.

Wipro Q4 results come weeks after Thierry Delaporte stepped down before the completion of his term as the Chief Executive Officer (CEO).