Wipro Limited Reports Financial Results for the Quarter Ended September 30, 2024
Wipro Limited (NYSE:WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced its financial results for the quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Current Quarter | QoQ Change | YoY Change |
|---|---|---|---|
| Gross Revenue | $2,662.6 million | +1.5% | -1.0% |
| IT Services Revenue | $2,660.1 million | +1.3% | -2.0% |
| Net Income | $383.1 million | +6.8% | +21.3% |
| Earnings Per Share (EPS) | $0.071 | +6.8% | +21.3% |
| Operating Cash Flows | $509.7 million | +10.5% YoY | 132.3% of Net Income |
Wipro's financial performance this quarter is marked by a steady increase in both QoQ and YoY net income, and EPS. Despite a minor decline in IT Services revenue YoY, the company managed to expand its operating margins, signifying strengthened operational efficiency.
Segment Revenue Performance
| Segment | Revenue (USD Mn) | QoQ Change | YoY Change |
|---|---|---|---|
| IT Services | $2,660.1 | +1.3% | -2.0% |
| IT Products | $7.9 | N/A | N/A |
Wipro's IT Services segment experienced a modest quarterly growth, confirming the resilience and demand in this major operational area. However, the IT Products sector saw limited activity this quarter.
Key Developments and Operational Highlights
- Large deal bookings reached $1.5 billion, the highest in 10 quarters, reflecting significant client confidence.
- The company maintained robust operating cash flows at 132.3% of net income.
- Voluntary attrition stood at 14.5% on a trailing 12-month basis.
- Wipro’s Board of Directors recommended issuing bonus shares in a 1:1 ratio, pending shareholder approval.
Executive Commentary
Srini Pallia, CEO and Managing Director, lauded the robust execution and expansion of top accounts across strategic markets and sectors, including BFSI, Consumer, Technology, and Communications. He emphasized Wipro's ongoing investments in strategic priorities and AI development. Aparna Iyer, CFO, expressed satisfaction with the QoQ EPS growth and margin expansion, outlining the strong operational improvements contributing to the results.
Shareholder Returns and Guidance
Wipro announced a bonus share issue at a 1:1 ratio, subject to shareholder approval. The company provided forward guidance, expecting IT Services revenue to range between $2,607 million and $2,660 million for the quarter ending December 31, 2024, indicating a flat to a slight decrease in sequential growth.
Stock Price Movement
Following the earnings release, Wipro’s stock saw a price decline of approximately -1.48%.
In summary, Wipro Limited showcased a strong quarter with enhanced operational performance despite minor challenges in revenue growth, signaling a positive outlook for the upcoming quarters.
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