Wipro Q1 Results: India’s fourth largest IT services company Wipro on Thursday reported a consolidated net profit of nearly 12 per cent year-on-year (YoY) rise in consolidated net profit for the quarter ended June to Rs 2,870 crore. Consolidated revenue increased 6 per cent to Rs 22,831 crore.
Wipro said its IT Services segment revenue rose 0.8 per cent YoY to $2,778.5 million. Revenue for the IT Services segment fell 2.8 per cent in constant currency (CC) terms in line with the earlier guidance.
Order Wins
Total order wins for the quarter stood at $3.7 billion. Large deal wins were at $1.2 billion, up by 9 per cent YoY. IT Services segment’s operating margin came in at 16 per cent, up 112 basis points YoY.
Operating cash flows stood at 130 per cent of net income for the quarter at Rs 3,750 crore ($457.1 million1). Voluntary attrition continued to moderate sequentially, coming in at an 8-quarter low of 14 per cent.
Q2 Guidance
For the September quarter, the Bengaluru-based company has guided for IT services revenue to be in the range of $2,722-2,805 million. This indicates a 2 per cent sequential fall at the lower end, and a mere 1% growth at the upper end of the guided range.
“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.
“Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the USD 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.”
Chief Financial Officer Jatin Dalal said: “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 an 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.”
Operating cash flows stood at 130 per cent of net income for the quarter at Rs 3,750 crore ($457.1 million1). Voluntary attrition continued to moderate sequentially, coming in at an 8-quarter low of 14 per cent.
Results History
In the last 12 quarters, Wipro had positive returns on post-earnings days 7 times. The best post-earnings day was in July 2020, with a gain of nearly 17 per cent amid Covid-related tailwinds. The worst performance occurred in October 2022, eroding 7 per cent of investor wealth.
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