Wipro on Friday reported a 2.8 per cent year-on-year (YoY) rise in net profit at Rs 3,052.90 crore compared with Rs 2,969 crore in the same quarter last year. Revenue for the quarter came in at Rs 23,229 crore, up 14.35 per cent over Rs 20,313.60 crore in the same quarter last year. The IT major guided for a 11.5-12.0 per cent growth in IT Services revenues in constant currency terms (CC). This translated into a guidance of minus 0.6 per cent to 1 per cent revenue growth sequentially in constant CC terms for the March quarter. The guidance was lower than nil-2 per cent guidance that analysts anticipated ahead of the quarterly earnings.
Wipro said IT Services segment revenue advanced 6.2 per cent YoY to $2,803.50 million. IT services revenue rose 0.6 per cent sequentially and 10.4 per cent YoY. The Wipro board announced an interim dividend of Re 1 per share and fixed January 25 as the record date. for the same. The payment of the interim dividend will be made on or before February 10, the IT firm said.
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Wipro said its total bookings stood at $4.3 billion at the end of December quarter, up 26 per cent YoY. For the quarter, it closed 11 large deals resulting in a TCV of over $1 billion, up 69 per cent YoY. Wipro said revenues from top five clients grew 15.7 per cent YoY and top 10 clients 14.7 per cent YoY in constant currency terms, underscoring deepening relationships with top strategic clients.
Chief Financial Officer Jatin Dalal said, “Our Operating margins are now at 16.3 per cent, which is an expansion of 120 basis points from last quarter. This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies. We generated strong operating cash flows at 143 per cent of our net income for the quarter and our EPS increased by 14.6 per cent quarter-over-quarter.”
Voluntary attrition moderated 180 bps from previous quarter, landing at 21.2 per cent for the trailing twelve months for the quarter.
CEO and Managing Director Thierry Delaporte said, “I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row,” he said.
Delaporte said his company continued to gain market share as a result of deepening client relationships and higher win rates.
“Clients are turning to us to help them manage an evolving macro environment and balance their transform-ation goals with cost optimization. Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market,” he said.