Wipro Q3 profit surges to Rs 2,694 crore, exceeds analyst expectations

Wipro Q3 results: Wipro, India's fourth-largest IT services provider on Friday announced its December quarter earnings (Q3FY24). The company’s net profit surged 1.8 per cent to Rs 2,694.2 crore in Q3, from Rs 2,646 crore in the previous quarter of the same fiscal.

However, the IT major’s revenue from operations fell 1.4 per cent to Rs 22,205.1 crore, from Rs 22,516 crore in Q2FY24. The revenue beat analysts' average estimate of Rs 22,104 crore, according to LSEG data.

Its Earnings before interest, taxes (EBIT), also known as operating profit jumped 6.2 per cent to Rs 3,267.1 crore, from Rs 3,075.7 crore in Q2 FY24.

The company’s margin zoomed 105 basis points (bps) to 14.71 per cent, from 13.66 per cent in the previous quarter.

Wipro also announced a dividend of Rs 1 per share. The company has set a record date of January 24, 2024. “The payment of Interim Dividend will be made on or before February 10, 2024,” Wipro added.

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The IT services segment revenue fell 2.1 per cent sequentially to $2,656.1 million in the December quarter.

Meanwhile, the total bookings stood at $3.8 billion, up by 0.2 per cent quarter-on-quarter (QoQ) and large deal bookings stood at $0.9 billion in the December quarter.

“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20 per cent year-to-date growth. Further, we are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business,” said Thierry Delaporte, CEO and Managing Director.

The company’s voluntary attrition came in at 10-quarter low of 12.3 per cent during Q3 FY24.

March quarter outlook (Q4FY24)

“We expect revenue from our IT Services business segment to be in the range of $2,615 million to $2,669 million, which translates to sequential guidance of -1.5 per cent to +0.5 per cent in constant currency terms, the company added.

“Under our ai360 strategy, AI is now embedded across most of our existing solutions and client offerings. We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalise on emerging opportunities, as the macro environment improves,” Delaporte added.

The shares of Wipro settled 3.88 per cent higher at Rs 465.45 per share when the market closed today, January 12.