Wipro logs 1.4% decrease in gross revenue, net income up 1.8% in Q3

Software major Wipro Ltd closed the third quarter of FY24 with a lower net profit of about Rs 2,700 crore on a lower revenue.

According to the official statement issued on Friday on results for the Quarter ended December 31, 2023, the gross revenue reached Rs 222.1 billion, a decrease of 1.4 per cent QoQ. IT services segment revenue was at $ 2,656.1 million, a decrease of 2.1 per cent QoQ.

However, net income for the quarter was at Rs 26.9 billion ($323.9 million 1), an increase of 1.8 per cent QoQ. Earnings per share for the quarter was at Rs 5.16 ($0.06 1), an increase of 2.0 per cent QoQ.

Non-GAAP 2 constant currency IT Services segment revenue decreased 1.7 per cent QoQ. Total bookings 3 was at $ 3.8 billion, up by 0.2 per cent QoQ and large deal bookings 4 was at $0.9 billion, the statement said.

IT services segment EBIT for the quarter was Rs 35.4 billion ($425.8 million 1), a decrease of 1.8 per cent QoQ. IT services operating margin 5 for the quarter was at 16.0 per cent, down by 11 bps QoQ.

“Our investments in people, processes, and business operations are continuing to pay off,” CEO and Managing Director Thierry Delaporte said in a statement.

“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,” Delaporte added.

“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 capitalise on emerging opportunities, as the macro environment improves.”

Aparna C. Iyer, Chief Financial Officer, said: “I am pleased with our rigour of execution across all financial metrics- revenue, margin, EPS, and cash flow. We are building a more resilient, agile, and efficient organisation 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.”