Wipro Q4 results: Revenue remains flat at ₹22,208 crore, net profit at ₹2,858 crore, up 5.8% QoQ: Key takeaways

IT services provider Wipro on Friday, April 19, reported a 7.6% fall in consolidated profit after tax (PAT) year-on-year to ₹2,834.6 crore for the March quarter of FY24.

The company had reported a PAT of ₹3,093.5 crore for the March quarter of FY23.

Consolidated revenue from operations also declined by around 4% to ₹22,208.3 crore in the last quarter of 2023-24 compared to ₹23,1,90.3 crore in the year-ago period.

IT services revenue also dropped nearly 5% to ₹22,079.6 crore in the March quarter against ₹23,176.2 crore in the year-ago quarter. On the other hand, the IT products revenue was up 2% at ₹115.9 crore against ₹113.1 crore in the year-ago period.

Wipro reported a 40 basis point rise in IT services operating margin to 16.4% in the March quarter compared to the year-ago period.

Voluntary attrition was at 14.2% on a trailing 12-month basis.

“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,” Aparna Iyer, Chief Financial Officer, said.

Full-year revenue down marginally

For the full 2023-24 fiscal, Wipro reported a 0.8% drop in gross revenue to ₹89,760 crore ($10.8 billion) compared to the year-ago period. IT services segment revenue dropped 3.8% year-on-year to $10.805 billion.

Net income for the year dropped 2.7% year-on-year to ₹11,050 crore in 2023-24.

“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,” Srini Pallia, CEO and Managing Director, said.

Wipro gave sequential guidance of (-) 1.5 per cent to +0.5 per cent in constant currency for IT services revenue for the April-June quarter.

“We expect revenue from our IT Services business segment to be in the range of $2,617 million to $2,670 million,” it said.

Large deal bookings jump 9.5%

Wipro reported a 9.5% jump in large deal bookings to $1.2 billion in the March quarter compared to a year ago period while sequentially large deals rose by 31%. Total bookings were at $3.6 billion.

The large deals included a contract from a multinational healthcare and insurance organization which selected Wipro to transform its technology-enabled health services business to increase adoption of value-based care and enhance member experience.

“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,” newly-appointed CEO Pallia said.

The Board of Directors confirmed the interim dividend of ₹1 declared by the Board earlier.