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.
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Wipro Q1FY24 Highlights
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%
There are more large deals, fewer smaller deals: CEO Delaporte
"$1 billion investment in AI is largely organic, could include some inorganic," said Thiery Delaporte
Wipro Q1 Results LIVE: Wipro will give wage hikes later this year
We are pivoting our business to doing more valuable work for more strategic clients than tiny amount of work (for others), saysCFO JatinDalal
Don't expect margins to go below this range of 16%: CEO Delaporte
"There has been slowdown. Is it completely abnormal, is it surprisingthat there is an adjustment? I don't think so" he adds.
No onboarding of freshers in Q1, will calibrate hiring according to requirements: CHRO Saurabh Govil
TheChief Human Resources Officeradds that variable pay in Q1 is at 80%
Have a lot of flexibility on balance sheet even after buyback: CFO Jatin Dalal
Wipro Q1 results LIVE: APMEA market bookings in TCV are looking healthy
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.
AI can and will fundamentally change every aspect of business: Wipro CEO Thierry Delaporte
"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.
Wipro Earnings LIVE: EBIT margin 112 bps higher than Q1 of last year
"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.
Wipro Q1 Results LIVE: Q1 was another quarter of robust deal closures, says CEO Thierry
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.
Wipro sees headcount decline for the third consecutive quarter, ends Q1FY24 with 7,163 fewer employees
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.
Wipro Q1 Results LIVE: Chief Financial Officer Jatin Dalal comments on company performance
"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
Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins
: CEOThierry Delaporte
"Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the USD 1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses." the CEO and Managing Director said.
Wipro Q1 results LIVE: Attrition rate at 8-quarter low of 14%
Wipro Earnings LIVE:Q2FY24 Guidance
The projected range for IT Services $ revenue is estimated to be between $2,722 million and $2,805 million. Additionally, the expected constant currency IT Services revenue is anticipated to show a decline ranging from -2% to a growth of +1%.
Wipro Q1 Results LIVE Updates
Wipro 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.
Wipro Q1 results LIVE: Margins are expected to remain flattish this quarter
According to brokerages, there is an anticipated decline of 20 basis points (bps) on a quarter-on-quarter (QoQ) basis. This decline is expected to be primarily attributed to the wage hike, although it may be partially offset by reduced subcontractor costs.Kotak Institutional Equities in a note said, “The revenue decline will have a corresponding impact on margins. We forecast a 20 bps QoQ sequential decline even as margins will likely increase on YoY comparison.”
Wipro Earnings LIVE: Brokerages estimate Wipro to record revenue decline in the range of 1.2 to 1.6%
The expected dip in revenue aligns with the previously stated guidance range of 1-3% decline. Wipro anticipates this decline due to factors such as exposure to hi-tech and consumer verticals, reduced discretionary spending, and weakness in consulting services.
Wipro Results LIVE: The company's results through the years
In the last 12 quarters, Wipro had positive returns on post-earnings days 7 times. The best post-earnings day was in July 2020, with a gain of nearly 17 percentamid Covid-related tailwinds. The worst performance occurred in October 2022, eroding 7 percentof investor wealth.
Wipro shares trade on a positive note ahead of earnings; gain over 1%
Wipro Q1 Results Live: Analysts expect sequential downturn across major financial metrics
The company is expected to report a revenue of Rs 23,014 crore in Q1FY24 according to an average of the estimates of Motilal Oswal, Kotak Institutional Equities, ICICI Securities, HDFC Securities and Jefferies. This is supposed to be a 1.1 percent decline QoQ (quarter-on-quarter) or a 6.4 percent increase YoY (year-on-year), meeting the revenue guidance of 1-3 percent decline set by the company at the beginning of this quarter.
