Wipro Q4 Results: Cons PAT Up 5% QoQ To Rs 2,834.6 Crore, Revenue Guidance Weaker Than Estimates

Azim Premji-backed Wipro has reported mixed numbers in terms of bottom-line and top-line front for Q4FY24, while missing street expectations by margins. However, Wipro's revenue guidance also came weaker than estimates, hinting that months likely to be challenging. In Q4FY24, Wipro posted a consolidated net profit of Rs 2,834.6 crore.

In the quarter under review, Wipro's PAT is up by 4.95% from Rs 2,694.2 crore in Q3FY24, but down by 8.5% from its PAT of Rs 3,074.5 crore in Q4 of last year.

Sequentially, consolidated revenue came in flat at Rs 22,208.3 crore in Q4FY24, versus Rs 22,205.1 crore in Q3FY24. However, revenue declined by 4.4% from Rs 23,190.3 crore in the same quarter a year ago.

In dollar terms, Wipro's IT services segment revenue was at $2,657.4 million, an increase of 0.1% QoQ and a decrease of 6.4% YoY. While non-GAAP constant currency IT Services segment revenue decreased 0.3% QoQ and 6.6% YoY. Meanwhile, the IT services operating margin for the quarter was at 16.4%, up by 40 bps QoQ.

Furthermore, its total bookings was at $3.6 billion. Large deal bookings were at $1.2 billion, an increase of 31.1% QoQ and 9.5% YoY. Additionally, operating cash flows of Rs 52.2 billion ($626.1 million), an increase of 9.0% QoQ and 182.6% of Net Income for the quarter. Also, Voluntary attrition was at 14.2% on a trailing 12-month basis.

Srini Pallia, CEO and Managing Director, said "FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about the opportunities that lie ahead. We are on the brink of a major technological shift. Artificial intelligence is transforming our client's needs as they seek to harness its power for competitive advantage and enhanced business value."

Also, Aparna Iyer, Chief Financial Officer, said "We expanded our margins by 40 basis points during the quarter resulting in EPS growth of 5.2% QoQ in Q4. Despite a challenging macro-environment our IT services margin expanded by 50 basis points for the full year FY24. We generated highest operating cash flow in recent years which is at 183% of our net- income in Q4 and 159% on a full year basis."

For the full year 2023-24, Wipro's net income was at Rs 110.5 billion, down by 2.7% YoY, while gross revenue stood at Rs 897.6 billion, marginally down by 0.8% YoY.

Going ahead,Pallia added, "At Wipro, we have been gearing up for this moment. We have the capabilities, leadership, and strength of over 230,000 Wiproites around the world to help us realize our goals. Although there's a considerable amount of work ahead of us, I am confident that together, with our collective effort, we can pave the way for the next chapter of growth."

For Q1FY25, Wipro expects revenue from our IT Services business segment to be in the range of $2,617 million to $2,670 million. This translates to sequential guidance of (-)1.5% to +0.5% in constant currency terms.

The Q1FY25 revenue guidance is weaker than analysts' estimates. Kotak Institutional Equities had predicted revenue growth guidance of -0.5 to 1.5% for the June 2024 quarter.

Also, Wipro's board said that the interim dividend of Rs 1 declared by the Board earlier at its meeting held on January 12th, 2024, shall be considered as the final dividend for the financial year 2023-24.

On BSE, Wipro's share price stood at Rs 452.85 apiece, up by 1.92% with a market cap of Rs 2,36,622.39 crore.