Wipro's Profit Declines By 8% To Rs 2,858 Cr In Q4 FY 2024
Wipro on Friday unveiled its financial results for the fourth quarter of the fiscal year 2023-24. The company's consolidated net profit dropped by 7.60 per cent YoY to Rs 2,858.20 crore, compared to Rs 3,093.50 crore in the same quarter last year. Similarly, the consolidated revenue from operations fell by 4.23 per cent YoY to Rs 22,208.30 crore, compared to Rs 23,190.30 crore in the same quarter last year.
Analysts had predicted a 4 to 8 per cent drop in profit and a 4 to 5 per cent drop in sales.
Wipro highlighted its IT services segment revenue at USD 2,657.4 million for the quarter, an up by 0.1 per cent QoQ and down by 6.4 per cent YoY.
The company's constant currency (CC) IT Services segment revenue fell 0.3 per cent QoQ and 6.6 per cent YoY.
In the fourth quarter, large deal bookings reached USD 1.2 billion, showing a significant increase of 31.1 per cent compared to the previous quarter and 9.5 per cent compared to the same period last year.
The operating margin for IT services also saw a positive growth of 40 basis points quarter over quarter, reaching 16.4 per cent.
Aparna Iyer, Wipro Chief Financial Officer, highlighted that the company successfully expanded its margins by 40 basis points during the quarter, resulting in a 5.2 per cent growth in earnings per share. Despite the challenging macro-environment, the IT services margin expanded by 50 basis points for the full fiscal year FY24. Additionally, the company achieved the highest operating cash flow in recent years, amounting to 183 per cent of net income in the fourth quarter and 159 per cent on a full-year basis.
The CEO and Managing Director, Srini Pallia, said that FY24 was a tough year for the tech industry and the macroeconomic situation is still uncertain. Nevertheless, he expressed optimism about the future possibilities. "We are on the verge of a significant technological change. Artificial intelligence is revolutionising our client's requirements as they strive to leverage its potential for a competitive edge and improved business worth. At Wipro, we have been preparing for this moment." he added.
The trailing 12-month voluntary attrition rate was recorded at 14.2 per cent and the headcount fell by 9.5 per cent in FY24.
The Board of Directors has officially approved the interim dividend of Re 1 that was declared earlier at their meeting on 12 January 2024, to be recognised as the final dividend for the financial year 2023-24.
In another filing, Wipro underlined the reappointment of Rishad A Premji as Whole-Time Director designated as Executive Chairman for 5 years with effect from 31 July 2024 to 30 July 2029.
The company also re-appointed Azim H Premji as Non-Executive, Non-Independent Director for 5 years with effect from 31 July 2024 to 30 July 2029.
