Wipro Q4 FY24 Results: Net profit rises 5% sequentially, attrition steady at 14.2%

Wipro Q4 FY24 Results: Wipro on Friday reported a consolidated net profit of Rs 2,834.6 crore for the January-March period, up 5.2 per cent compared with the previous quarter.

The Bengaluru-based IT major registered revenue of Rs 22,208.3 crore for the quarter ended March 31 as against Rs 22,205.1 crore for the previous three months, according to a regulatory filing.

The topline and the bottomline were largely in line with analysts' expectations.    

According to Zee Business research, the IT major's fourth-quarter net profit was estimated at Rs 2,850 crore and revenue at Rs 22,200 crore. 

“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," said Srini Pallia, CEO and Managing Director, Wipro. 

The company said its IT services segment revenue decreased 3.8 per cent on a year-on-year basis to $10,805.3 million in the financial year 2023-24. Its large deal bookings grew 17.4 per cent to $4.6 billion. 

"Artificial intelligence is transforming our clients’ needs as they seek to harness its power for competitive advantage and enhanced business value. At Wipro, we have been gearing up for this moment... 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," Pallia added. 

Wipro's IT services segment operating margin improved by 40 basis points sequentially to 16.4 per cent. 

“Despite a challenging macro-environment, our IT services margin expanded by 50 basis points for the full year, FY24. We generated the highest operating cash flow in recent years, which is at 183 per cent of our net income in Q4 and 159 per cent on a full-year basis," said Aparna Iyer, Chief Financial Officer, Wipro. 

Q1 FY25 revenue guidance

Wipro expects revenue from its IT services business to be in the range of $2,617-2,670 million in the quarter ending June 30, which translates into sequential guidance of between negative 1.5 per cent and positive 0.5 per cent in constant currency terms (assuming the rupee to be at 83.12 against the US dollar). 

Wipro attrition

Voluntary attrition at the company remained steady sequentially, at 14.2 per cent on a trailing 12-month basis, according to Wipro. 

Wipro shares

Wipro shares ended stronger by Rs 8.6, or 1.9 per cent, at Rs 452.9 apiece on BSE ahead of the earnings announcement.