BENGALURU: IT major Wipro on Thursday reported a 11.9% increase in consolidated net profit for the first quarter ending June 30,2023, at Rs 2,870 crore. It missed analysts' estimates as they expected over Rs 2,970 crore net profit for the first quarter. However, sequentially, Wipro’s Q1 net profit was down 6.6%.
The company’s revenue for the June quarter stood at Rs 22,831 crore, a 6% increase compared to Rs 21,528.6 crore in the year-ago period. In a post-earnings press conference, Wipro CEO and MD Thierry Delaporte spoke about an uncertain demand environment. “We are in a time of uncertainty, therefore, companies are not necessarily very forward-looking in terms of how much they are going to spend in the next 1-6 months from now,” he said.
The company is seeing a slowdown in terms of discretionary spending in sectors like BFSI, technology and communications. Wipro’s total booking for the quarter stood at $3.7 billion and large deal bookings were at $1.2 billion, up by 9% YoY. The large deal bookings growth was highest in the last eight quarters.
Its operating margin was at 16%, up 112 bps y-o-y. Jatin Dalal, CFO, Wipro, said, “Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. We generated strong operating cash flows at 130% of our net income for the quarter.” He also said that the company completed its largest buyback and there is a lot of flexibility on the balance sheet even after buyback.
This time, the company did not give an outlook on hiring. Saurabh Govil, Chief Human Resources Officer (CHRO) said hiring will depend on the macroeconomic environment and hiring will happen in critical areas such as AI. “We will calibrate hiring according to requirements,” he said. The company said its variable payout stands at 80%. Wipro’s attrition stood at 17.3% on a last-12-month basis, down from 19.4% in the previous quarter.
Wipro to look for acquisitions in Gen AI space
BENGALURU: Wipro, which announced $1 billion investments in AI, said it is also focusing on strategic acquisitions in the Generative AI space. When asked about Wipro’s inorganic growth strategy, CEO and MD Thierry Delaporte told this newspaper, “We are constantly focusing on long-term investments and priorities. Our primary objective is to make sure that our clients will be able to rely on us for their transformation. GenAI is key for them. Whenever we identify a company that would complement or enhance our capabilities, we will consider acquisitions.”The company has started training all its employees in AI starting this month.