IT services major Wipro Ltd on October 12 said its consolidated net profit for the quarter ended September 30, 2022 fell 9.27 percent to Rs 2,659 crore from Rs 2,930 crore in the year-ago period.
The Bengaluru-based company's revenue from operations stood at Rs 22,539.7 crore, a 14.60 percent growth over Rs 19,667.4 crore in the previous year.
Sequentially, the revenue increased 4.69 percent from Rs 21,528.6 crore in the previous quarter. Profit was up 3.71 percent from Rs 2563.6 crore in the previous quarter.
Wipro said IT services segment revenue was at $2,797.7 million, an increase of 8.4 percent year on year (YoY). Constant currency IT services segment revenue increased by 4.1 percent quarter on quarter (QoQ) and 12.9 percent YoY.
Some of the numbers were sharply below expectations. According to a Moneycontrol analyst poll, projections said net profits would be down 4 percent YoY and up 10 percent QoQ. Revenue growth, meanwhile, in line with expectations.
Wipro’s order bookings (Total Contract Value) during the quarter grew by 23.8 percent YoY. Large deal bookings – meaning deals greater than or equal to $30 million – grew by 42 percent YoY in H123.
“The solid growth in our bookings, large deal signings, and revenues underscore our improved market competitiveness and enhanced value proposition,” said Thierry Delaporte, CEO and Managing Director, Wipro.
“Our ongoing investments in high-growth strategic areas have allowed us to steadily increase our win rate and enhance the quality of our pipeline. As a result of these efforts and our sharp focus on operational excellence, we are now seeing an improvement in our margins.”
Wipro in its outlook for the December quarter said it expects revenue from our IT services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5 percent to 2.0 percent.
IT services operating margin for the quarter was at 15.1 percent, recording a rise of 16 basis points QoQ. Operating cash flows was 180.6 percent of net income for the quarter at Rs 4,800 crore or $590 million.
“We achieved margins of 15.1 percent in Q2 after absorbing the impact of salary increases and promotions,” said Jatin Dalal, Chief Financial Officer, Wipro. “Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity.”
Voluntary attrition measured in trailing twelve months for the quarter was at 23 percent, a moderation of 30 basis points from the previous quarter.
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