Published by: Vivek Dubey
Wipro reported a revenue of Rs 22,755 crore for the April to June 2023 quarter, marginally lower than CNBC-TV18 poll estimate of Rs 22,874 crore.
Wipro's margin at 16.05%, meanwhile, came in slightly higher than the projection of 16%. However, it was still 20 basis points lower than the preceding quarter.
The firm's operating income or earnings before interest and taxes (EBIT) was recorded at Rs 3,652 crore, 3% lower than the last quarter of 2022-23 fiscal.
The firm’s gross revenue reached $2.8 billion, an increase of 6% on a year-on-year basis. IT Services segment revenue increased to $2,778.5 million, an increase of 0.8% YoY.
Thierry Delaporte, CEO and MD, said that weak macro environment and lower discretionary spends affect Wipro’s revenues, especially in hi-tech and BFSI sectors.
Despite some softness in revenues, Wipro has held margins steady by improving productivity, better utilisation and managing fixed costs. Delaporte said that the firm is investing in people and tech to build a more agile organisation.
Delaporte says the company did not onboard any freshers in Q1. The company will calibrate hiring quarterly. He added that the company will be rolling out wage hikes later this year.
For the July to September 2023 quarter, Wipro said that it expects revenue from its IT Services business segment to be in the range of $2,722 million to $2,805 million.
Wipro’s total bookings for the quarter under review stood at $3.7 billion and large deal bookings were at $1.2 billion, up by 9% YoY, the highest in eight quarters.
The company generated strong operating cash flows at 130% of net income for the quarter. Earning per share (EPS) for the quarter grew by 11.5% year-on-year.
Delaporte pointed out that the IT services industry is undergoing a seismic shift with the advent of artificial intelligence, which can and will fundamentally change businesses.