Wipro Q1FY24 net profit up 12% YoY at Rs 2,870 crore

Wipro Limited, a leading technology services and consulting company, announced financial results for the quarter ended June 30, 2023. The Bengaluru-based IT services major standalone net profit stood at Rs 2,870 crore, up 12% for Q1FY24 as compared with a net profit of Rs 2,563 crore in the year-ago period. 

Revenue was up by 6% YoY at Rs 22,831 crore in Q1FY24 as compared to Rs 21,528 crore in Q1FY23.

The company’s Q1 guidance for CC revenue growth was at -3 to -1% as it expected the macro environment to remain challenging. Wipro is the third company from the largecap IT pack to post its numbers and was expected to post the weakest growth amongst its largecap peers.

The IT major expects Revenue from the IT Services business segment to be in the range of $2,722 million to $2,805 million. This translates to sequential guidance of -2.0% to +1.0% in constant currency terms, the company said in the filing.

Thierry Delaporte, CEO and Managing Director said “Wipro’s first-quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins. 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.”

Jatin Dalal, Chief Financial Officer, said, “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.”

Source: Media reports