Wipro Q3 Results: Consolidated PAT Falls By 11.75% YoY To Rs 2,694.2 Crore; Rupee Revenue Declines Too

On an expected line, Azim Premji-backed Wipro reported a seasonally weak quarter in the period ending December 31, 2023. Wipro registered a consolidated net profit, attributable to owners, to Rs 2,694.2 crore in Q3FY24, which was a mixed trend declining by a huge 11.75% from profit of Rs 3,052.9 crore in the same quarter a year ago. Sequentially, Wipro reported a marginal growth of 1.81%.

Its PAT was at Rs 2,816.9 crore in the September 2023 quarter.

On the other hand, consolidated revenue from operations was in red on year-on-year and quarter-on-quarter basis.

Rupee revenue came in at Rs 22,205.1 crore in Q3FY24, registering a drop of 4.41% from revenue of Rs 23,229 crore in Q3 of FY23. Also, revenue was down by 1.38% from Rs 22,515.9 crore in the preceding quarter. In dollar terms, gross revenue was at $2.7 billion.

In constant currency, IT Services segment revenue decreased 1.7% QoQ. Meanwhile, in dollar terms, this segment's revenue was at $2,656.1 million, a decrease of 2.1% QoQ.

Furthermore, in Q3FY24, the company's IT services segment EBIT for the quarter was Rs 35.4 billion ($425.8 million), a decrease of 1.8% QoQ. Additionally, IT services operating margin for the quarter was at 16.0%, down by 11 bps QoQ.

Thierry Delaporte, CEO and Managing Director. "In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20 percent year-to-date growth."

In the quarter, the company's voluntary attrition rate has continued to moderate QoQ, coming in at 10-quarter low of 12.3% in Q3'24.

While Wipro's order booking stood to the tune of $3.8 billion with 14 large deal wins.

Further, Delaporte added, "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."

He 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 capitalize on emerging opportunities, as the macro environment improves."

Meanwhile, Aparna C. Iyer, Chief Financial Officer, said, "We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, 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."

Wipro has declared dividend up to Re 1 per share/ADS for FY24.

On BSE, Wipro share price ended at Rs 465.45 apiece, up by 3.9% on Friday. Its market cap stood at Rs 2,43,167.25 crore.

Some of the large deal wins by Wipro in Q3FY24 were:

- The company was selected by a US-based member-governed health insurance non-profit to deploy an integrated Business Platform as a Service to deliver end-to-end plan administration services.

- A global technology leader has chosen Wipro to develop capabilities for their AI-driven orchestration platform. Wipro will collaborate closely with the client to integrate various systems involved in the process lifecycle, simplifying navigation, and streamlining workflows for end-users.

- An American Retail Bank has chosen Wipro as the end-to-end product development partner for the client's Payments & Digital Platform groups. Capco, Designit, and Wipro teams will provide fully-staffed, cross-functional working groups to deliver on key initiatives across the bank - including cloud migration, marketing analytics, and relationship management modernization.

- A Middle Eastern financial regulatory body has selected Wipro as a technology partner to strengthen its IT applications and infrastructure. Wipro will create a unique solution to support the client's business applications, infrastructure technology, service desk, and IT operating model.

- One of the world's largest wind turbine manufacturers has selected Wipro to transform its Enterprise Resource Planning landscape to harmonize the Finance, Manufacturing, Sales, Supply Chain and Customer service processes. Wipro will deliver a tailored solution that unifies the client's regional platforms, while matching the individual needs of the business units.

- A leading automotive manufacturer's financial services organization selected Wipro to consolidate their IT services, with the goal of harmonizing their IT processes across the entire enterprise, creating new synergies across functions, and a consolidation of current supplier landscape.

- An international banking institution has selected Wipro to transform its business applications portfolio. The Wipro team will create a bespoke, automation-based solution to assess, transform, and manage the client's applications estate.

Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs. Leveraging its holistic portfolio of capabilities in consulting, design, engineering, and operations, the company help clients realize their boldest ambitions and build future-ready, sustainable businesses.