Wipro Q4 Results: Profit falls 8% YoY to ₹2,835 cr, revenue dips 4% YoY

Indian IT services and consulting major Wipro Ltd announced on Friday that its net profit fell by 8% to ₹2,835 crore for the fiscal fourth quarter, compared to the same period last year when it stood at ₹3,074 crore for the quarter ended on March 31, 2024. Wipro's consolidated revenue saw a decline of 4.2%, amounting to ₹22,208 crore, down from ₹23,190 crore in the same period last year.. However, this figure surpassed analysts' forecasts of ₹22,151 crore, according to data from London Stock Exchange Group (LSEG),

During the fourth quarter, Wipro experienced significant revenue declines in segments such as Banking, financial services and insurance (BFSI), manufacturing, and communications. Sequentially, BFSI saw an 8.9% decrease, communications plummeted by 20%, and manufacturing dropped by 11.5%. The total bookings were at $3.6 billion, with large deal bookings at $1.2 billion, marking a 31.1% increase QoQ and 9.5% YoY.

Read Also: 

• Infosys Q4 Results: Profit jumps 30% YoY to ₹7,969 crore
• TCS Q4 results: Profit rises 9% to Rs 12,434 crore, revenue up 3.5%

The IT services segment revenue was at $2,657.4 million, a 0.1% increase sequentially but a 6.4% decrease from the previous year. The healthcare segment was the only vertical that showed notable revenue growth, with a 1.3% increase. The company achieved an operating cash flow of ₹17,620 crore during the fourth quarter, marking a 35% YoY increase and reaching 158.6% of the net income for the year.
 
For the quarter ended June 30, the company has guided for a sequential revenue of (-)1.5% to 0.5% in constant currency terms.
 
Srini Pallia, the new CEO and managing director, acknowledged the challenges faced in FY24 but expressed optimism about the opportunities ahead. Pallia emphasized that Wipro is on the verge of a major technological shift, particularly with the increasing demand for artificial intelligence.
 
Pallia said, “We have the capabilities, leadership, and strength of over 230,000 Wiproites worldwide to help us achieve our goals. While there is still much work to be done, I am confident that together, with our collective effort, we can pave the way for the next chapter of growth.”
 
In the fourth quarter ended March 31, Wipro saw a decrease of 6,180 employees. For the entire fiscal year FY24, Wipro experienced a reduction in headcount by 24,516, marking the second consecutive fiscal year with a decline in overall headcount. The total headcount for FY24 reached 234,054.
 
Biswajit Maity, Sr Principal Analyst at Gartner, commented that Wipro saw muted growth in Q4 but maintained a promising outlook with a healthy pipeline of business opportunities. He noted that as organisations prioritise multi-year digital transformations, IT services spending is expected to increase, boosting Wipro's prospects for positive growth in the upcoming quarters. Maity attributed the muted growth to weakened discretionary spending and extended decision-making cycles among customers.
 
Wipro's strong foundation is evident in its longstanding client relationships, demonstrating its commitment to delivering value while remaining competitively priced. While Wipro has experienced significant growth in its India business, other countries in the APAC region have seen a slight decline, according to Maity.
 
This is the first time that Wipro is reporting under Pallia. On April 6, the former CEO Thierry Delaporte abruptly resigned, allowing Pallia to take over the top role. Delaporte resigned a year earlier than his scheduled term amid reports that promoters were dissatisfied with his performance and that he might not receive an extension for his tenure next year.

Read more: Who is Srinivas Pallia, Wipro's new CEO and MD?

Wipro's rival companies, TCS and Infosys, announced their quarterly results on April 12 and April 18, respectively. TCS reported a 9.14% YoY increase in consolidated net profit at ₹12,434 crore for the March quarter, compared to ₹11,392 crore in the same quarter the previous year. The company expressed optimism about AI, Cloud, Enterprise Solutions, Internet of Things (IoT), and Cyber Security, which it believes drove growth in the quarter.

Infosys posted a 30% YoY growth in its consolidated net profit at ₹7,969 crore for the quarter ending March 2024. This is compared to ₹6,128 crore in the same quarter the previous year. Revenue from operations in the fourth quarter stood at ₹37,923 crore, a 1% increase from ₹37,441 crore in the previous year's quarter.