Total Bookings of $3.7 billion for the Quarter Large deal Bookings frowth of 9% YoY. Highest in last 8 quarters Operating Cash Flows at 130% of Net income
Bengaluru: Wipro Limited, a leading technology services and consulting. Company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30,2023.
Wipro’s performance continues to lag its peers. Its revenue declined 2.8% sequentially in constant currency in the June quarter compared to the March quarter. Wipro had forecast its revenue to grow between -3% to -1% in the June quarter. In dollar terms, its revenue in constant currency rose 1.1% year on year to $2.7 billion.
Addressing press conference announcing financial results , Wipro CEO Thierry Delaporte said, in almost every industry, business have been reducing discretionary spends in response to the weaker macro environment. “That’s had an impact on our revenues as well”, he added.
Delaporte said, “ Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins,” , He also stated that “ Despite a gradual reduction in 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 USD 1 billion investment solidifies Wipro’s position as leading transformation partner that delivers the result and innovation our clients need to future-proof their business.”
Jatin Dalal, CFO , 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% and 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.
Wipro’s operating margin was nearly flat at 16% in the June quarter compared to 16.3% in the March quarter. It closed $3.7 billion worth of deals in the the June quarter and within that, large deals comprised $1.2 billion, which is the highest bookings in eight quarters, It also booked 10 deals over $30 million during the same period.
Wipro’s employee count declined nearly 9,000 taking the total tally of 2.4 lakh employees. Wipro Chief Human Resources Officer (CHRO) Saurabh Govil , responding to media said, its attrition rate is at an eight –quarter low at 17.3%. He said the promotion cycle is on track and the company will be rolling out a variable payout of 80% for the June quarter. He, however, refrained from sharing a hiring outlook for freshers in the current fiscal, but he said the company will continue to hire for roles of AI and cyber security. CEO Delaporte said, the company is investing $1billion in advancing AI capabilities over the next three years. Wipro will train 250,000 employees on artificial intelligence (AI) fundamentals and responsible use of AI over the course of the next 12 months.
Highlights of the Results Gross Revenue reached Rs 228.3 billion, an increase of 6.0% YoY. IT service Segment Revenue increased to $2.778.5 million, an increase of 0.8% YoY and an increase of 6.1% YoY in INR terms.
