IT major Wipro on Thursday posted a profit of Rs 2870.10 crore for the first quarter of financial year 2023-24, up 12 per cent in comparison to Rs 2563.60 crore during the same period last year. It posted revenue at Rs 22,831 crore, up 6.1 per cent against Rs 21,528.60 crore in Q1FY23. “Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins,” said Thierry Delaporte, CEO and Managing Director, Wipro. Wipro’s total bookings for the quarter came in at $3.7 billion. Its large deal bookings was at $1.2 billion, up 9 per cent on-year, which is the highest in the last eight quarters.
According to CNBC TV18 estimates, Wipro was expected to post the quarter revenue at Rs 22,874 crore and EBIT at Rs 3,660 crore. While the total income for the quarter came in at Rs 23,479 crore, total expenses during Q1FY24 was at Rs 19,681.80 crore.
Wipro’s Q1FY24 performance amid reducing discretionary spending
The IT firm maintained new business momentum despite a gradual reduction in clients’ discretionary spending. “The launch of Wipro ai360 and the $1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses,” said Thierry Delaporte.
While its IT services segment posted a revenue of Rs 22,755.40 crore, which included revenue of Rs 6560.70 crore in Americas 1, Rs 6830.30 crore in Americas 2, Rs 6713.40 in Europe, and Rs 2651.00 crore in APMEA, the IT products segment clocked a revenue of Rs 69.40 crore.
“Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating margin for the first quarter was 16 per cent on expansion of 112 basis point YoY. We generated strong operating cash flows at 130 per cent of our net income for the quarter. EPS for the quarter grew by 11.5 per cent YoY,” said Jatin Dalal, Chief Financial Officer, Wipro.
Further, Wipro’s employee headcount was at 249,758. It said that voluntary attrition has continued to moderate QoQ, coming in at an eight quarter low of 14 per cent in Q1FY24.
Going forward, Wipro said that the company expects revenue form its IT services business to be in the range of $ 2,722 million to $2,805 million.