Wipro Q1 Results: Missed Estimates, Consolidated PAT At Rs 3,003 Crore, Constant Currency Revenue Falls

Azim Premji-backed IT giant, Wipro reported a consolidated net profit of Rs 3,003.2 crore in the quarter ending June 2024 period. This profit was attributable to equity holders of the company on a consolidated basis. The latest PAT jumped by 4.64% from net profit of Rs 2,870.1 crore in Q1FY24 and also up by 5.95% from profit of Rs 2,834.6 crore in the March 2024 quarter. Wipro missed estimates in the first quarter for FY25.

Meanwhile, consolidated revenue from operations came in at Rs 21,963.8 crore in Q1FY25, lower than revenue of Rs 22,831.0 crore in Q1FY24 and Rs 22,208.3 crore in Q4FY24.

Further, the company's IT services segment revenue was at $2,625.9 million, a decrease of 1.2% QoQ and a decrease of 5.5% YoY. Also, non-GAAP constant currency IT Services segment revenue decreased 1.0% QoQ and 4.9% YoY.

In the quarter, Wipro's total bookings stood at $3,284 million. Large deals were at the size of $1,154 million, a decrease of 3.1% QoQ and 3.6% YoY.

Whereas, Wipro's IT services operating margin for the quarter was at 16.5%, an increase of 0.1% QoQ and 0.4% YoY. Also, operating cash flows of ₹40.0 billion ($479.0 million), an increase of 6.5% YoY and at 131.6% of Net Income for the quarter.

Srini Pallia, CEO and Managing Director, said "We recorded another quarter of total large deal bookings over $1 bn, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and prepare our workforce for an AI-first future."

Moreover, Aparna Iyer, Chief Financial Officer, said "We continued to expand our margins to 16.5% in Q1'25, this is a 42-bps improvement YoY. Our margin performance is also reflected in our EPS increase of 10% YoY. Our operating cash flows continue to be strong at 131.6% of our net income which takes our current investment and cash balance to $5.4 billion."

As of the June 2024 quarter, Wipro's total headcount stood at 234,391. The company's voluntary attrition was at 14.1% on a trailing 12-month basis.

In its guidance, Wipro is expecting revenue from its IT Services business segment in the range of $2,600 million to $2,652 million. This translates to sequential guidance of (-)1.0% to +1.0% in constant currency terms.

Wipro's share price ended at Rs 557.25 apiece on BSE, down by 2.8% with a market cap of Rs 2,91,468.19 crore.