Wipro Results Q1: The company revealed a significant year-on-year (YoY) growth of nearly 12 percent in its consolidated net profit for the quarter ending in June, reaching Rs 2,870 crore. Additionally, the company experienced a 6% increase in consolidated revenue, amounting to Rs 22,831 crore.
Net profit up 12% YoY to Rs 2,870 crore, misses estimate
Revenue from ops up 6% YoY at Rs 22,831 crore
IT Services Revenue At Rs 22,755 Crore
IT Services EBIT At Rs 3652 Cr
IT Services EBIT Margin At 16.05%
$ Revenue At $2,778.5 Million
Wipro Q2FY24 Guidance
IT Services $ Revenue Seen At $2,722- $2,805 Million
Constant Currency IT Services Revenue Seen At -2% To +1%
"$1 billion investment in AI is largely organic, could include some inorganic," said Thiery Delaporte
We are pivoting our business to doing more valuable work for more strategic clients than tiny amount of work (for others), saysCFO JatinDalal
"There has been slowdown. Is it completely abnormal, is it surprisingthat there is an adjustment? I don't think so" he adds.
TheChief Human Resources Officeradds that variable pay in Q1 is at 80%
CEO Thierry Delaportesaid that in Q1 the company completed the transition to 4 business lines. "We are seeing tech spending normaliseand more clients are expecting faster ROI" he added. Currently, there is demand in high growth around cloud transformation. "Confident that our long term business strategy is correct.Business strategy will keep us competitive and resilient in the future" he says.
"We are using gen AI for enterprise knowledge mining, content optimisation, synthetic data generation, etc.This AI first approach will unlock more value, opportunity and commercial opportunity for clients" he adds.
"We continue to invest in people and tech to be more agile and efficient as an organisation.We continue to perform when we continue to transform -- we're aligning with market needs while undergoing a deep internal transformation. We closed our largest ever buyback allowing us to return $1.5 bn to shareholders" the CEO and Managing Director says.
Delaporte
"Booked 10 deals greater than $30 mn TCV.All around in in almost every industry businesses reducing discretionary spends. Has had an impact on our revenue as well" he added.
Bengaluru-basedIT majorWiprosaw its headcount decline for the third consecutive quarter, ending the June quarter with 7,163 fewer employees than the previous quarter. With this, the company’s headcount stands at 2,49,758. In contrast, during the same period last year,Wiproadded 15,446 employees. At the same time, the company's attrition numbers have continued their downward trend, with the last-twelve-month rate coming in at 17.3 percent in Q1FY24, down from 19.2 percent in the preceding quarter.Read more here.
"Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating Margin for the first quarter was 16% an expansion of 112 basis point YoY. We generated strong operating cash flows at 130% of our net income for the Quarter. EPS for the quarter grew by 11.5% YoY." he says
