On year on year basis, the IT firm’s net profit tumbled 11.75% and revenue declined 4.41% in Q3 FY24.
Profit before tax was at Rs 3,552.1crore in quarter ended 31 December 2023 (up 1.22% quarter on quarter (QoQ) and down 10.64% YoY).
In dollar terms, Wipro's gross revenue stood at $2.7 billionin Q2 FY24, down 1.4% QoQ. IT Services segment revenue reduced to $2,656.1 million, registering a decline of 2.1% QoQ.
IT Services operating margin for the quarter was at 16%, down by 11 bps QoQ. Non-GAAP constant currency IT Services segment revenue decreased 1.7% QoQ and 6.9% YoY.
For the quarter ending 31 December 2023, Wipro expects revenue from its IT Services business segment to be in the range of $2,615 million to $2,669 million. This translates to sequential guidance of -1.5% to +0.5% in constant currency terms.
During the quarter, the IT company's total bookings was at $3.8 billion, up by 0.2% QoQ and large deal bookings was at $0.9 billion, up by 79% YoY.
The company said that its closing employee count in IT Services stood at 240,234. Voluntary attrition has continued to be moderate QoQ, coming in at a 10-quarter low of 12.3% in Q3 FY24. Voluntary attrition measured in trailing twelve months for the quarter was at 14.2%.
Meanwhile, the company’s board declared an interim dividend of Rs 1 per equity share for FY24. The record date for the same is fixed on 24 January 2024 and the dividend will paid on or before 10 February 2024.
Thierry Delaporte, CEO and managing director, said, “In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20 percent 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.
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 capitalize on emerging opportunities, as the macro environment improves.”
Aparna C. Iyer, chief financial officer, said, “I am pleased with our rigor of execution across all financial metrics- revenue, margin, EPS, and cash flow. We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people.”
Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.