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Wipro Q3 profit declines 12 per cent YoY to Rs 2,694 crore, revenue falls over 4 per cent

The consolidated revenue for Wipro in the third quarter stood at Rs 22,205 crore, a 4.40 percent year-on-year (YoY) decline.

Written By: Akshit Tyagi New Delhi Updated on: January 12, 2024 17:08 IST
Wipro
Image Source : PTI (FILE) Wipro building

Wipro reported a 12 percent year-on-year (YoY) decline in net profit at Rs 2,694 crore for the third quarter of the current financial year. This marks the fourth consecutive quarter in which the company has reported a fall in profits YoY.

The consolidated revenue of the company stood at Rs 22,205 crore, a 4.40 percent YoY decrease. Shares of Wipro ended Friday's trading session at Rs 466, nearly 4 per cent higher than the previous close of Rs 448.20 on the NSE. 

“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded 20 per cent year-to-date growth,” said Thierry Delaporte, chief executive officer and managing director at Wipro.

Revenue from IT business 

The company's revenue from its IT business declined by 1.1 per cent to Rs 22,151 crore. The EBIT (Earnings Before Interest and Taxes) margin for its IT business was reported at 16 per cent for the quarter, slightly lower than the previous quarter's margin of 16.1 per cent.

Wipro has set a sequential guidance of -1.5 per cent to 0.5 per cent in constant currency terms for the fourth quarter of the fiscal year 2023. The company expects revenue from its IT Services business segment to be in the range of USD 2,615 million to USD 2,669 million.

In terms of workforce dynamics, the voluntary attrition rate at Wipro reached a 10-quarter low of 12.3 per cent during the October-December quarter.

The company also declared an interim dividend of Rs 1 per share.

“Payment of an interim dividend of Rs 1 per equity share of par value of Rs 2 each to the members of the company as on January 24, 2024, being the record date. The payment of interim dividend will be made on or before February 10, 2024,” it said in an exchange filing.

On Thursday, Tata Consultancy Services posted an 8.2 per cent growth in net income for the third quarter at Rs 11,735 crore. The growth was primarily driven by a significant expansion in the home market, effectively offsetting the impact of a 3 per cent decline in the US market.

The management of TCS, led by Chief Executive K Krithivasan, said that the net income was affected by a charge of USD 125 million out of the USD 140 million earmarked for a legal settlement in the US during the quarter.

On the same day, Infosys reported a lower-than-expected 7.3 per cent fall in net profit for the December quarter due to sluggish demand from clients, prompting a reduction in its annual sales forecast. The company's consolidated revenue from operations increased by 1.3 per cent to Rs 38,821 crore during the third quarter of the ongoing fiscal, compared to Rs 38,318 crore a year ago.

READ MORE: TCS Q3 net profit rises 2 per cent to Rs 11,058 crore, revenue surges 4 per cent YoY

READ MORE: Infosys surges over 7 per cent after Q3 profit aligns with estimates 

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