Wipro reports marginal drop in Q4 net profit, expects revenue to fall in June quarter

Wipro Ltd. reported a 0.4% year-on-year decline in net profit for the fourth fiscal quarter ended March 2023 at ₹3,074 crore

Bengaluru-based Wipro Ltd. reported a 0.4% year-on-year decline in net profit for the fourth fiscal quarter ended March 2023 at ₹3,074 crore, compared to ₹3,087 crore in the corresponding period last year.

In Q4, the IT firm posted a revenue of ₹23,190 crore, a 11.2% increase from ₹20,860 crore reported in the same period a year ago. For the whole year, it reported a revenue of $11.2 billion, a growth of 11.5% in constant currency (CC) over the previous fiscal. Also, its revenue from IT services, which accounts more than 95% of its gross revenue, was at $2.82 billion, a dip at 0.6% over the sequential quarter in CC term.

In his commentary at Wipro’s new facility at Kodathi village in the outskirts of the city Thierry Delaporte, CEO and Managing Director, said, “We closed FY23 with the strongest-ever bookings recorded in a year. We delivered two consecutive quarters of total bookings of over $4.1 billion. Our large deal order booking grew by 155% year-over-year for the quarter.’‘

“We continue to maintain our focus on operational improvements and productivity enhancements which led to our IT services margin exit at 16.3% in Q4 despite macro headwinds. We generated strong operating cash flows at 121% of our net income for the quarter,’‘ said Jatin Dalal, Chief Financial Officer.

Despite strong deal bookings, the company guided for the June 30th ending quarter, a fall in revenue. “We expect Revenue from our IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million. This translates to sequential guidance of -3.0% to -1.0% in constant currency terms,’‘ Mr. Dalal added.

The company said it benefitted from a drop in attrition, to 19.2%, and improvement in employee utilisation in Q4. Although the firm hired 22,000 next-gen associates in FY23, its overall headcount declined by 1,823 employees to a total of 256,921.

Wipro on Thursday approved a proposal to buy back up to 26.96 crore equity shares for an aggregate amount not exceeding ₹12,000 crores at a price of ₹445 per share and accounting for 4.91% of the total paid-up equity shares of the company.