Wipro Q4 FY24: Sequential 5% Net Profit Growth, 14.2% Attrition

Wipro, the Bengaluru-based IT giant, announced its financial results for the fourth quarter of FY24, posting a consolidated net profit of Rs 2,834.6 crore, marking a 5.2% increase from the previous quarter. Revenue for the quarter stood at Rs 22,208.3 crore, showing marginal growth compared to the preceding three months.

These figures were largely in line with analysts' expectations, with estimated net profit at Rs 2,850 crore and revenue at Rs 22,200 crore. Srini Pallia, CEO and Managing Director of Wipro, acknowledged the challenges faced by the industry in FY24 but expressed optimism about future opportunities, citing an impending technological shift.

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In terms of operational performance, Wipro's IT services segment revenue experienced a 3.8% year-on-year decline to $10,805.3 million for the financial year 2023-24. However, the company reported a 17.4% growth in large deal bookings, amounting to $4.6 billion.

Pallia emphasized the transformative potential of artificial intelligence for clients seeking competitive advantage and enhanced business value. He highlighted Wipro's readiness to harness AI's power, expressing confidence in achieving collective growth.

The IT services segment's operating margin improved sequentially by 40 basis points to 16.4%. Aparna Iyer, Chief Financial Officer of Wipro, noted a 50 basis points expansion in IT services margin for FY24, attributing it to the company's highest operating cash flow generation in recent years.

Looking ahead, Wipro provided revenue guidance for Q1 FY25, expecting IT services revenue to range between $2,617-2,670 million, implying a sequential guidance of -1.5% to +0.5% in constant currency terms. The guidance assumes the rupee to be at 83.12 against the US dollar.

Regarding employee attrition, Wipro reported steady voluntary attrition at 14.2% on a trailing 12-month basis. Despite challenges, Wipro shares strengthened by 1.9% to Rs 452.9 apiece on the BSE prior to the earnings announcement.