News

Published: July 14, 2023
Updated: July 14, 2023

Wipro Reports Strong Q1 Results with Impressive Profit Growth

Wipro Ltd, a leading IT major, has released its financial results for the first quarter of the current financial year (Q1FY24). The company showcased a remarkable 11.9% rise in net profit, reaching Rs 2,870.1 crore compared to Rs 2,563.6 crore in the same quarter of the previous year. With a 6% year-on-year growth in gross revenue, amounting to Rs 22,830 crore, Wipro's performance highlights its resilience in the market. Additionally, the company announced the allotment of equity shares under the ADS Restricted Stock Unit Plan 2004 and a significant drop in voluntary attrition.

Robust Financial Performance:

Wipro achieved a noteworthy 6% YoY growth in gross revenue, reaching Rs 22,830 crore for Q1FY24. Furthermore, the net income for the quarter stood at Rs 2,870 crore, reflecting an impressive 12% YoY increase. The company's sustained focus on operational improvement has resulted in a steady margin, with a 112 basis point expansion YoY. The operating margin for the first quarter was 16%, and Wipro generated strong operating cash flows at 130% of its net income. The quarter also witnessed a growth of 11.5% YoY in earnings per share (EPS).

Strategic Direction and Client Trust:

Thierry Delaporte, the CEO and Managing Director of Wipro, expressed confidence in the company's Q1 results, emphasising the backbone of large deal bookings, robust client additions, and resilient margins. Despite a gradual reduction in clients' discretionary spending, Wipro maintained its new business momentum by delivering strong performance, innovation, and expanded services. The company's commitment to providing long-term solutions and capturing market share is evident in the launch of Wipro ai360 and a substantial $1 billion investment, solidifying its position as a leading transformation partner.

Attrition and Employee Engagement:

Wipro reported a significant drop of 14% in voluntary attrition on a sequential basis. This positive development signifies the company's ability to retain talent and nurture employee engagement. By fostering a supportive and fulfilling work environment, Wipro aims to strengthen its workforce and drive further success.

Market Response:

Wipro's strong financial performance and strategic initiatives have been well-received by the market. The company's shares rose marginally to Rs 394.35 on the BSE, indicating investor confidence in its growth prospects.

Wipro's Q1FY24 results showcase a robust financial performance, characterised by substantial profit growth, steady margins, and impressive earnings per share. The company's ability to secure large deals, attract new clients, and adapt to changing market dynamics is commendable. By prioritising operational improvement, client trust, and employee engagement, Wipro is well-positioned to navigate future challenges and deliver innovative solutions that drive business transformation.