IT major Wipro on April 19 reported an 8 per cent year-on-year (YoY) decline in its net profit to Rs 2,835 crore for the March 2024 quarter (Q4 FY24). Its revenue during January-March 2024 declined to Rs 22,208.3 crore, compared with Rs 23,190.3 crore in the year-ago period.
Wipro’s net profit had stood at Rs 3,074 crore in the corresponding period last year.
Wipro’s board of directors also announced an interim dividend of Rs 1, which was earlier declared in its meeting on January 12, 2024. It “shall be considered as the final dividend for the financial year 2023-24”, according to the filing.
In dollar terms, Wipro’s IT services revenue during Q4 FY24 stood at $2,657.4 million, an increase of 0.1 per cent QoQ and a decrease of 6.4 per cent YoY, according to a regulatory filing.
“In the quarter ending June 30, we expect revenue from our IT Services business segment to be in the range of $2.62 billion to $2.67 billion. This translates to sequential guidance of (-)1.5% to +0.5% in constant currency terms,” Wipro said in the statement.
Wipro’s voluntary attrition stood at 14.2 per cent on a trailing 12-month basis, which is higher than the 12.3 per cent reported in the previous December 2023 quarter. Wipro’s headcount has also fallen 9.5 per cent to 2,34,054 employees in the financial year 2023-24, compared with 2,58,570 a year ago.
Its earnings per share for the quarter was at Rs 5.43 ($0.07), an increase of 5.2 per cent QoQ.
Srini Pallia, CEO and managing director of Wipro, 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. At Wipro, we have been gearing up for this moment.”
Aparna Iyer, chief financial officer of Wipro, said, “We expanded our margins by 40 basis points during the quarter resulting in EPS growth of 5.2 per cent 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 per cent of our net income in Q4 and 159% on a full year basis.”
In a separate company filing, Wipro on Friday also announced the re-appointment of Rishad A Premji as its whole-time director designated as executive chairman.
Shares of Wipro on April 19 rose Rs 8.55 or 1.92 per cent to close at Rs 452.85 apiece on the BSE, ahead of the announcement of the company’s financial earnings.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
