Wipro on Friday reported fiscal first quarter profit at Rs 3036.60 crore. This was 5.2 per cent lower from Rs 2886.00 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 21,963.80 crore, down 3.8 per cent as against Rs 22,831.00 crore reported during the first quarter of previous year.
Aparna Iyer, Chief Financial Officer, said, “We continued to expand our margins to 16.5 per cent in Q1FY25, this is a 42-bps improvement YoY. Our margin performance is also reflected in our EPS increase of 10 per cent YoY. Our operating cash flows continue to be strong at 131.6 per cent of our net income which takes our current investment and cash balance to $5.4 billion.”
Wipro won large deals worth $1,154 million, down 3.6 per cent YoY. Its total bookings came in at $3,284 million.
Wipro Q1 results: Performance across regions and business verticals
Wipro’s IT services segment offers services to customers organized by four Strategic Market Units – Americas 1, Americas 2, Europe and Asia Pacific Middle East and Africa (APMEA).
Americas 1 includes the entire business of Latin America (“LATAM”) and the following industry sectors in the United States of America. The region recorded a revenue of Rs 6770.00 crore and a profit at Rs 1368.70 crore for the quarter ended June 2024.
Americas 2 includes the entire business in Canada and the following industry sectors in the United States of America: Banking and financial services, Energy, Manufacturing and resources, Capital markets and insurance, and Hi-tech. It posted Q1 revenue at Rs 6733.80 crore and the profit for the quarter came in at Rs 1553.30 crore.
Europe consists of the United Kingdom and Ireland, Switzerland, Germany, Benelux, the Nordics and Southern Europe. This region posted revenue for the quarter at Rs 6042.20 crore and profit at Rs 587.30 crore.
APMEA consists of Australia and New Zealand, India, Middle East, South-East Asia, Japan and Africa and it reported Q1 revenue at Rs 2350.30 crore and profit at Rs 244.10 crore.
Srini Pallia, CEO and Managing Director, said “We recorded another quarter of total large deal bookings over $1 bn, with our largest win in recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and prepare our workforce for an AI-first future.”
Further, the company said, “We expect revenue from our IT Services business segment to be in the range of $2,600 million to $2,652 million. This translates to sequential guidance of (-)1.0% to +1.0% in constant currency terms.”
Wipro’s attrition rate
During the quarter in review, Wipro added 337 employees, taking the total headcount to 234,391 employees. The company’s voluntary attrition was at 14.1 per cent on a last-twelve-month (LTM) basis. It was at 14.2 percent in the previous quarter.