BENGALURU: IT services company Wipro on Thursday posted a 0.4% fall in its consolidated net profit for the fourth quarter ending March 31, 2023 at Rs 3,074 crore compared to Rs 3,087 crore in the year-ago period. It missed Street estimates.
The company’s revenue from operations stood at Rs 23,190 crore, a 11% increase year-on-year (YoY), for the fourth quarter. Its revenues in the year-ago period stood at Rs 120,860 crore. The company has announced Rs 12,000 crore share buyback at a buyback price of Rs 445, which is a 19% premium. It will buy back about 26.9 crore shares from the shareholders.
Wipro’s IT Services Operating Margin for the quarter was at flat 16.3%. Thierry Delaporte, CEO and Managing Director, said that they believe the macro environment will remain challenging as its clients in many sectors are impacted by the prolonged uncertainty in the economic environment.
“These headwinds are impacting our business and projections as well,” the CEO said. According to him, the company delivered two consecutive quarters of total bookings of over $4.1 billion. “Our large deal order booking grew by 155% year-over-year for the quarter,” he said.
The CEO also said that they do not see a slowdown in decision making. But it is seeing some softness in the banking and financial space and also in the consulting business. Jatin Dalal, CFO, said, “We continue to maintain our focus on operational improvements and productivity enhancements which led to our IT services margin exit at 16.3% in Q4 despite macro headwinds.” ‘
Wipro has guided revenue from its IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million. This translates to sequential guidance of -3.0% to -1.0% in constant currency terms, due to the challenging macro environment.
Count its pennies
