Wipro posts Rs. 2870 Cr profits in Q1
Wipro Q1 Results: Net profit rises 12% but misses estimates

The Bengaluru-based IT services major Wipro today reported 11.9 % YoY growth in net profit in the first quarter ended June 30, 2023. however, net profit is down by 6.6 percent a net profit of Rs 2,563 crore in the year-ago period. The company’s Q1 guidance for CC revenue growth was at -3 to -1 percent as it expected the macro environment to remain challenging

Wipro was expected to post the weakest growth amongst its largecap peers.

Revenue for the quarter grew 6 percent YoY at Rs 22,831 crore as compared to Rs 21,528 crore in Q1FY23, missing estimates of Rs Rs 23,014 crore. The fall in revenue is primarily due to persistent weakness in the banking, financial services and insurance vertical .

Jatin Dalal, Chief Financial Officer, said, “Our operating Margin for the first quarter was 16% an expansion of 112 basis point YoY. We generated strong operating cash flows at 130% of our net income for the Quarter. EPS for the quarter grew by 11.5% YoY.”

The company also added that it received total bookings of $3.7 billion for the quarter. The large deal bookings growth stood at 9 percent YoY; highest in last eight quarters. CEO Thierry Delaporte said in a statement that the company maintained new business momentum despite a gradual reduction in discretionary spending. According to Mr. Thierry Delaporte, 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.

Wipro’s operating cash flows came at 130 percent of net income. Wipro’s employee headcount stood at 249,758 with an attrition rate of 17.3 percent.

Most of the IT companies have indicated about demand volatility and near-term challenges due to macroeconomic uncertainties coupled with companies reporting rampdowns in projects.

Among its peers, TCS saw its numbers come in line with estimates, while HCLTech saw a big miss on all fronts.

Guidance for Q2: For the second quarter of FY24, Wipro’s has guided for a revenue growth of -2 percent to 1 percent in constant currency terms.