Wipro Q3 Key Takeaways: PAT rises, revenue slips QoQ, attrition rate at 10-quarter low

Wipro Q3 Results Key Takeaways: IT services major Wipro on Friday, January 12, released its December quarter (Q3 FY24) results, wherein the company reported a 1.8 per cent rise in its consolidated profit after tax (PAT) on a quarter-on-quarter (QoQ) basis. However, its consolidated revenue from operations slipped by 1.37 per cent sequentially.

The company also declared an interim dividend of Re 1 per share. The attrition rate of the company continued to moderate on a QoQ basis, coming in at a 10-quarter low of 12.3 per cent during the period under review.

PAT rises

The company's consolidated net profit in the December quarter saw a rise of 1.8 per cent sequentially at Rs 2,694 crore, in line with Zee Business Research estimates of Rs 2,600 crore.

Revenue slips

The Bengaluru-headquartered company reported Rs 22,205.10 crore in revenue for the quarter ended December 2023.

It is down by 1.37 per cent from the Rs 22,515.9 crore revenue the company reported in the September quarter.

Aparna C. Iyer, Chief Financial Officer, said, “I am pleased with our rigor of execution across all financial metrics- revenue, margin, EPS, and cash flow. 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.”

The IT firm's constant currency fell by 1.7 per cent sequentially, while it was down by 6.9 per cent compared to Q3FY22. 

Its operating margin for the third quarter stood at 16.0 per cent.   

It got its 31 per cent revenue from Americas 1, while 30 per cent of its revenue came from Americas 2. Europe generated 27.7 per cent of its revenue, Asia Pacific and Middle East Market comprised 11.3 per cent business.  

Attrition rate 

Wipro said that its voluntary attrition rate continued to moderate QoQ, coming in at a 10-quarter low of 12.3 per cent in Q3 FY23-24. The company's headcount in the quarter under review was 240,234.

50% interim dividend

The IT company's board announced an interim dividend of Re 1 per equity share of the face value of Rs 2 each, i.e., a 50 per cent payout for the current financial year. 

"Payment of interim dividend of Rs 1/- per equity share of par value Rs 2- each to the Members of the Company as of January 24, 2024, being the Record Date. The payment of Interim Dividend will be made on or before February 10, 2024.," the company's regulatory filing said. 

Deal wins

Wipro said that its total bookings in the December quarter were $3.8 billion, up by 0.2 per cent QoQ. However, on constant currency basis, its bookings slipped by 13.5 per cent YoY.  

Large deal bookings in the same period were at $0.9 billion, the company said in a statement. But in large deals, there was a 8.3 per cent decline on a constant currency basis for the company.  

“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded 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," said Thierry Delaporte, CEO and Managing Director, Wipro.

Guidance

The company expects revenue from its IT Services business segment to be in the range of $2,615 million to $2,669 million, translating to sequential guidance of -1.5% to +0.5% in constant currency terms.