Wipro Q3 results: Profit drops 12%, dividend announced; IT firm gives guidance for Q4; key highlights

12/01/2024

Wipro Ltd on Friday reported a 11.90 per cent year-on-year (YoY) drop in consolidated net profit at Rs 2,700 crore compared with Rs 3,065 crore in the same quarter last year. The profit degrowth was in line with analyst estimates. Consolidated sales for the quarter came in at Rs 22,205 crore compared with Rs 23,229 crore in the same quarter last year. Offshore revenue as percentage of services stood at 59.8 per cent. Wipro said its dollar revenue came in at $2.66 billion for the quarter, down 1.7 per cent sequentially and 6.9 per cent on year-on-year basis.

Wipro Q3 margin, deal wins

Operating margin for the quarter stood at 16 per cent, down 11 basis points sequentially. The IT major reported a total bookings of $3.8 billion, down 13.5 per cent YoY in CC terms. Large deals wins stood at $0.9 billion, down 8.3 per cent in CC terms. Attrition for the quarter stood at 14.2 per cent.

Wipro dividend, attrition

Wipro announced an interim dividend of Re 1 per share. The IT major set January 24 as the record date for the same. Wipro said it will pay the interim dividend on or before February 10. The IT firm said its voluntary attrition continued to moderate sequentially, coming in at 10-quarter low of 12.3 per cent in the December quarter.

Wipro Q4 guidance

Wipro expects revenue from IT Services business segment to be in the range of $2,615 million to $2,669 million. This translates to sequential guidance of minus 1.5 per cent to 0.5 per cent in constant currency terms.

“Our investments in people, processes, and business operations are continuing to pay off,” said Thierry Delaporte, CEO and Managing Director.

Wipro management commentary

Delaporte said deal booking momentum remained strong in the a seasonally soft quarter. He said Wipro’s large deals recorded a 20 per cent year-to-date growth. He said his IT firm has are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in Capco business.

“Under our ai360 strategy, AI is now embedded across most of our existing solutions and client offerings. We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalize on emerging opportunities, as the macro environment improves.”

Chief Financial Officer Aparna C Iyer 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 organisation which has helped us sustain our margins at 16 per cent, 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.”

Wipro sector, geography mixes

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