Wipro reports 8% decline in Q4 net profit at ₹2,835 Crore

22 Apr 2024 , 01:25 PM

Wipro Ltd said net profit dipped 8% to ₹2,835 Crore in the fiscal fourth quarter, exceeding expectations. In the previous year, the firm made ₹3,074.5 Crore in profits.

The software services company’s revenue dipped to ₹22,208.3 Crore in the three months ending March 31, according to an exchange filing on April 19. The previous year, it had consolidated revenue of ₹23,190.3 Crore.

IT services segment sales was $2.66 billion, an increase of 0.1% sequentially and a reduction of 6.4% from a year ago.

In Q4, sequential revenue fell by 0.3% in constant currency terms. While the measure fell by 6.6% year on year in constant currency terms.

Srinivas Pallia, the new managing director, stated that FY24 was a hard year for our business, and the macroeconomic climate continues unpredictable.

On April 6, then-CEO Thierry Delaporte unexpectedly quit, allowing Pallia to take over the top position.

Delaporte resigned a year before his allocated term ended, citing allegations that promoters were dissatisfied with his performance and that he might not be given an extension for the following year.

For the fourth quarter, the EBIT margin, or operating margin, increased by 10 basis points from the previous year to 16.4%.

Revenue fell YoY to ₹89,760 Crore in FY24, down from ₹90,486 Crore the previous year. The net profit for the year was ₹11,045 Crore. The operating margin for the year was 16.1%.

In the fourth quarter, attrition fell by 520 basis points (bps) to 14.2% on a trailing 12-month basis. Wipro reported a decrease of 6,180 workers during the quarter. Wipro’s headcount fell by 24,516 in fiscal year 24.

This comes at a time when IT organisations are striving to increase the utilisation rate of existing staff while cutting attrition in order to expand profitability.

India’s top two IT businesses had a mixed start in Q4FY24, with weak demand due to an uncertain macroeconomic environment.

At around 1.22 PM, Wipro was trading 1.79% higher at ₹460.85, against the previous close of ₹452.75 on NSE.

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