Wipro projects that the IT Services business sector will generate between $2,615 million and $2,669 million in sales. In constant currency terms, this amounts to sequential guidance of minus 1.5% to 0.5%.
Wipro Ltd. posted a consolidated net profit of Rs 2,700 crore on Friday, down 11.90 percent year over year (YoY) from Rs 3,065 crore in the same quarter the previous year. The profit decline complied with analyst projections. Compared to the same quarter previous year, when consolidated sales were Rs 23,229 crore, the current quarter’s sales came in at Rs 22,205 crore. The percentage of offshore revenue in services was 59.8%. According to Wipro, its dollar revenue for the quarter was $2.66 billion, down 1.7% from the previous quarter and 6.9% from the previous year.
Wipro Q3 margin, deal wins
The operating margin for the quarter was 16%, a sequential decrease of 11 basis points. With $3.8 billion in total bookings, the IT major recorded a YoY decline of 13.5% in CC terms. Wins from large deals were $0.9 billion, a decrease of 8.3% in terms of CC. During the quarter, attrition was 14.2%.
Wipro dividend, attrition
Wipro declared a Re 1 interim dividend for each share. The IT major designated January 24 as the day of record-keeping. Wipro declared that the company will release the interim dividend by February 10 at the latest. The IT company reported that voluntary attrition continues to decline sequentially, with the December quarter showing a 10-quarter low of 12.3%.
Wipro Q4 guidance
Wipro projects that the IT Services business sector will generate between $2,615 million and $2,669 million in sales. In constant currency terms, this amounts to sequential guidance of minus 1.5% to 0.5%.
Our investments in people, processes, and business operations are continuing to pay off, stated Thierry Delaporte, CEO and Managing Director.
Wipro management commentary
According to Delaporte, the deal booking pace held steady during the usually weak quarter. According to him, Wipro’s big agreements have grown by 20% so far this year. The double-digit surge in order bookings in the Capco division, according to him, is indicative of the early stages of consulting growth returning to his IT firm.
AI is currently integrated into the majority of our current customer services and solutions under the AI360 strategy. The objectives of our internal AI deployment, which spans all business and functional domains, are productivity, efficiency, and scale. As the macro situation improves, we are sure that these investments will enable us to take advantage of new opportunities.
The Chief Financial Officer, Aparna C Iyer, expressed satisfaction with the disciplined execution across various financial metrics such as revenue, margin, EPS, and cash flow. The organization is focusing on building a more resilient, agile, and efficient structure, enabling the maintenance of margins at 16%, reflecting a 63 basis point improvement year-to-date. This achievement is notable despite facing revenue challenges and absorbing the impacts of investments made for growth and personnel.
