Business
Wipro Q3 results: Net profits drop 12% to Rs 2,694 crore; Re 1/share interim dividend declared
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Wipro Q3 results: Wipro Ltd faced a challenging quarter ending in December, reporting a 12% year-on-year decline in consolidated net profit to Rs 2,694 crore. The overall consolidated revenue also witnessed a 4.4% drop to Rs 22,205 crore during this period.
According to ET, both the bottom line and top line results aligned closely with expectations. The board announced a Re 1 per share interim dividend payout.In terms of sequential performance, revenue decreased by 1.4%, while profit showed a modest 1.8% increase.
Examining the nine months ending in December, Wipro experienced a marginal 0.4% rise in consolidated revenue to Rs 67,552 crore. However, the net profit encountered a nearly 1% decline, settling at Rs 8,211 crore.Looking ahead to the fourth quarter, Wipro expects its IT Services business revenue to range between $2.62 billion and $2.67 billion. This implies a sequential growth in constant currency terms between -1.5% and +0.5%. Market expectations were set at -1% to +1% growth in constant currency revenue.
In the December quarter, the IT services segment observed a 2.1% sequential decline in revenue to $2.66 billion. Wipro had previously guided for a 3.5-1.5% sequential decline in IT services revenue for the same quarter.
During the seasonally slow December quarter, Wipro secured deals worth $3.8 billion, a modest 0.2% increase sequentially, with large deal bookings slightly surpassing $900 million.
“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20% year-to-date growth,” stated Thierry Delaporte, the Managing Director and CEO.“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,” Delaporte further added.
Despite revenue challenges and investments for growth, the company’s CFO, Aparna C Iyer, noted a 63 basis point improvement in margins on a year-to-date basis, maintaining a 16% margin. This was attributed to strong execution across key metrics, affirming the company’s commitment to building a resilient and efficient organisation.
In positive news, Wipro experienced a decline in attrition levels to a 10-quarter low in the three months ending December, with voluntary attrition at 12.3% over the last 12 months. The total headcount as of December 31 stood at 2,40,234, representing a reduction of 4,473 employees.
Analysing segment-wise performance, Wipro encountered the steepest revenue drops in BFSI, manufacturing, and communications during the last quarter. BFSI experienced a 4.9% sequential fall, communications declined by 9.5%, and manufacturing dropped by 6.4%. The healthcare sector was the only vertical that saw a growth in revenue, with a notable increase of 7.3%.
According to ET, both the bottom line and top line results aligned closely with expectations. The board announced a Re 1 per share interim dividend payout.In terms of sequential performance, revenue decreased by 1.4%, while profit showed a modest 1.8% increase.
Examining the nine months ending in December, Wipro experienced a marginal 0.4% rise in consolidated revenue to Rs 67,552 crore. However, the net profit encountered a nearly 1% decline, settling at Rs 8,211 crore.Looking ahead to the fourth quarter, Wipro expects its IT Services business revenue to range between $2.62 billion and $2.67 billion. This implies a sequential growth in constant currency terms between -1.5% and +0.5%. Market expectations were set at -1% to +1% growth in constant currency revenue.
In the December quarter, the IT services segment observed a 2.1% sequential decline in revenue to $2.66 billion. Wipro had previously guided for a 3.5-1.5% sequential decline in IT services revenue for the same quarter.
During the seasonally slow December quarter, Wipro secured deals worth $3.8 billion, a modest 0.2% increase sequentially, with large deal bookings slightly surpassing $900 million.
“In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20% year-to-date growth,” stated Thierry Delaporte, the Managing Director and CEO.“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,” Delaporte further added.
Despite revenue challenges and investments for growth, the company’s CFO, Aparna C Iyer, noted a 63 basis point improvement in margins on a year-to-date basis, maintaining a 16% margin. This was attributed to strong execution across key metrics, affirming the company’s commitment to building a resilient and efficient organisation.
In positive news, Wipro experienced a decline in attrition levels to a 10-quarter low in the three months ending December, with voluntary attrition at 12.3% over the last 12 months. The total headcount as of December 31 stood at 2,40,234, representing a reduction of 4,473 employees.
Analysing segment-wise performance, Wipro encountered the steepest revenue drops in BFSI, manufacturing, and communications during the last quarter. BFSI experienced a 4.9% sequential fall, communications declined by 9.5%, and manufacturing dropped by 6.4%. The healthcare sector was the only vertical that saw a growth in revenue, with a notable increase of 7.3%.
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