Wipro, a leading global technology, consulting, and business process services company, recently announced its financial results for the quarter ending June 30, 2024.
While overall revenue experienced a slight decrease compared to the previous quarter and the same period last year (-1.1% QoQ and -3.8% YoY), the company demonstrated positive growth in other key financial metrics.
Wipro’s profitability remains a strong point, with IT services operating margin expanding by 0.4% year-over-year. This indicates the company’s efficiency in managing its costs while delivering services. Additionally, earnings per share (EPS) witnessed a significant increase of 9.9% YoY, signifying growth in shareholder value.
1. Wipro announces results for the quarter ended June 30, 2024
Despite a slight decline in large deal bookings year-over-year (-3.6%), Wipro continues to secure substantial contracts, exceeding $1 billion for the quarter. This highlights the company’s ability to attract large clients and drive future growth.
Looking ahead, Wipro projects its IT services revenue to remain stable in the next quarter. The company’s focus on innovation and strategic client wins across various industries, including healthcare, automotive, and technology, positions it well for sustained growth in the future.
In essence, Wipro is a financially strong company with a proven track record of success in the IT services industry. The company’s recent financial results indicate that it is well-positioned for continued growth in the future.
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global technology, consulting, and business process services company, today announced its financial results for the quarter ended June 30, 2024, under International Financial Reporting Standards (IFRS).
Financial Highlights:
- Revenue: Gross revenue reached ₹219.6 billion ($2,635.8 million), a decrease of 1.1% QoQ and 3.8% YoY.
- IT Services Revenue: IT services segment revenue stood at $2,625.9 million, a decrease of 1.2% QoQ and 5.5% YoY.
- Margin Expansion: IT services operating margin showed positive growth, reaching 16.5%, an increase of 0.1% QoQ and 0.4% YoY.
- Profitability: Net income for the quarter was ₹30.0 billion ($360.4 million), an increase of 5.9% QoQ and 4.6% YoY.
- Earnings Growth: Earnings per share (EPS) were at ₹5.75 ($0.071), reflecting a rise of 5.9% QoQ and 9.9% YoY.
- Strong Cash Flow: Operating cash flows remained robust at ₹40.0 billion ($479.0 million), representing an increase of 6.5% YoY and standing at 131.6% of net income for the quarter.
Strategic Deal Wins:
Wipro secured a series of significant deals across various industries during the first quarter, demonstrating its commitment to innovation and client success. Key highlights include:
- $500 Million Managed Services Deal: A leading U.S. communication service provider awarded Wipro a five-year contract to provide managed services for select products and industry-specific solutions.
- AI-Powered Customer Experience Transformation: A global technology leader selected Wipro to reimagine its hyperscale customer experience centers using AI-powered operations for real-time business insights, talent scaling, and cost reduction.
- End-to-End Healthcare Claims Processing with AI: A US-based health insurance company partnered with Wipro to deliver a multi-year transformation of its medical claims processing using customized AI solutions for accurate claims processing, error prediction, and agent assistance.
- Streamlining Global Technology Services for Automotive Tier 1 Supplier: Wipro was chosen by a US-based automotive Tier 1 supplier to streamline its global technology services and applications (engineering and business) using automation and AI to enhance customer experience, reduce operating costs, and boost innovation.
- Product Development Partnership with Flash Memory Provider: A leading flash memory solutions provider selected Wipro as its strategic partner for product development and engineering. Wipro will establish a Center of Excellence for Solid State Drive (SSD) engineering, leveraging its expertise to enhance the client’s product development lifecycle.
Outlook:
Wipro projects its IT services business segment revenue to range between $2,600 million and $2,652 million for the quarter ending September 30, 2024, translating to a sequential growth of -1.0% to +1.0% in constant currency terms.
Management Commentary:
- Srini Pallia, CEO and Managing Director: “We recorded another quarter of total large deal bookings over $1 billion, with our largest win in recent years. Our top accounts continued to grow, accompanied by growth in the Americas, SMU, BFSI, and Consumer sectors. We are confident in our ability to deliver better on bookings and profitable growth as we progress to Q2.”
- Aparna Iyer, Chief Financial Officer: “Our margins continued to expand, reaching 16.5% in Q1’25, reflecting a 42-basis point improvement YoY. This is further evidenced by our 10% Yo