Wipro's Q4 FY24 Profit Drops 8% to Rs 2,858 Cr

Business MInutes

Wipro's fourth-quarter financial results for fiscal year 2023-24 revealed a 7.60 per cent year-on-year drop in consolidated net profit, amounting to Rs 2,858.20 crore, and a 4.23 per cent year-on-year decrease in consolidated revenue from operations, totaling Rs 22,208.30 crore. These figures were within analysts' predicted range of a 4 to 8 per cent drop in profit and a 4 to 5 per cent drop in sales.

Despite the challenges, Wipro demonstrated resilience in its IT services segment. The segment's revenue stood at USD 2,657.4 million, showing a slight increase of 0.1 per cent quarter-on-quarter but a decrease of 6.4 per cent year-on-year. The constant currency revenue declined by 0.3 per cent quarter-on-quarter and 6.6 per cent year-on-year.

However, there were positive indicators amidst the challenging environment. Large deal bookings reached USD 1.2 billion, marking a significant increase of 31.1 per cent compared to the previous quarter and 9.5 per cent compared to the same period last year. Additionally, the operating margin for IT services improved by 40 basis points quarter-on-quarter, reaching 16.4 per cent.

Aparna Iyer, Wipro's Chief Financial Officer, emphasized the company's margin expansion efforts, resulting in a 5.2 per cent growth in earnings per share. Despite the tough macroeconomic conditions, the IT services margin expanded by 50 basis points for the full fiscal year FY24. Moreover, Wipro achieved its highest operating cash flow in recent years.

CEO and Managing Director Srini Pallia acknowledged the challenges faced by the tech industry in FY24 but expressed     optimism about future prospects. He highlighted the imminent technological change, particularly the role of artificial intelligence in enhancing competitiveness and business value.

Wipro also addressed its human resources dynamics, with a trailing 12-month voluntary attrition rate of 14.2 per cent and a 9.5 per cent reduction in headcount for FY24.

In governance matters, the Board of Directors approved the interim dividend declared earlier, and the reappointment of key figures like Rishad A Premji as Executive Chairman and Azim H Premji as Non-Executive, Non-Independent Director was confirmed.

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