IT firm Wipro on Friday posted third quarter profit for FY24 at Rs 2700.60 crore, down 11.9 per cent in comparison to Rs 3065.00 crore during the corresponding quarter of last year. It posted revenue from operations at Rs 22,205.10 crore, down 4.4 per cent as against Rs 23,229.00 crore during the third quarter of FY23. The company also announced the payment of interim dividend of Re 1 per equity share of par value Rs 2 each to the members of the company as on January 24, 2024, being the record date. The payment of interim dividend will be made on or before February 10, 2024, the company said.
While the total income recorded by the IT firm during the quarter in review was at Rs 22,803.00 crore, total expenses incurred during the quarter was at Rs 19,250.50 crore.
The company’s IT Products segment recorded Q3 revenue at Rs 80.50 crore and profit for the segment posted a gain of Rs 11.40 crore. The IT Services segment, meanwhile, posted Q3 revenue at Rs 22,150.80 crore and the profit for the segment was at Rs 3,542.60 crore. It said that the IT services operating margin was recorded at 16 per cent, and EPS was up 2 per cent QoQ.
Wipro said that it expects the revenue from its IT Services business segment to be in the range of $2,615 million to $2,669 million. This translates to sequential guidance of -1.5 per cent to +0.5 per cent in constant currency terms.
Aparna C Iyer, Chief Financial Officer, said, “I am pleased with our rigor of execution across all financial metrics- revenue, margin, EPS, and cash flow. We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16 per cent, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people.”
In terms of order booking, Wipro said that the total bookings was at $3.8 billion with 14 large deal wins. “In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20 per cent year-to-date growth. Further, we are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business,” said Thierry Delaporte, CEO and Managing Director.
Furthermore, voluntary attrition, Wipro said, continued to moderate QoQ, coming in at 10-quarter low of 12.3 per cent in Q3FY24. “Our investments in people, processes, and business operations are continuing to pay off,” said Thierry Delaporte.
“Under our ai360 strategy, AI is now embedded across most of our existing solutions and client offerings. We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalize on emerging opportunities, as the macro environment improves,” said Thierry Delaporte.