Wipro financial results: June 2023 quarter shows boost in IT services revenue

Global technology services and consulting firm, Wipro, reported a year-on-year increase of 6% in its gross revenue for the quarter ending June 30, 2023, reaching Rs 228.3 billion ($2.8 billion).

Notably, the firm’s IT services segment revenue rose by 0.8% YoY, equivalent to a 6.1% rise in INR terms.

In addition, Wipro’s total bookings for the same period amounted to $3.7 billion, with large deal bookings reaching $1.2 billion, a 9% YoY increase. This represents the highest growth in the last eight quarters. Moreover, the company’s operating margin in its IT services segment stood at 16.0%, marking a YoY increase of 112 basis points.

For the quarter in question, the company’s net income also experienced a growth of 12.0% YoY, totalling Rs 28.7 billion ($349.8 million). This growth is correspondingly reflected in the earnings per share for the quarter, which increased by 11.5% YoY to Rs 5.23 ($0.061). Operating cash flows, at 130% of net income, were recorded at Rs 37.5 billion ($457.1 million).

Wipro June 2023 quarterly report reveals 6% YoY gross revenue increase. Photo courtesy of Rameshng/Wikimedia Commons.

The firm also reported an 8-quarter low of 14% in voluntary attrition, which has continued to moderate quarter on quarter. For the quarter ending September 30, 2023, Wipro expects revenue from its IT services business segment to range from $2,722 million to $2,805 million, which represents a sequential guidance of -2.0% to +1.0% in constant currency terms.

Thierry Delaporte — Wipro CEO and Managing Director said: “Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins.

“Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the USD 1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses.”