Wipro Limited announces financial performance for FY 2024
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a global leader in technology services and consulting, reported its financial results for the quarter and year ended March 31, 2024, adhering to International Financial Reporting Standards (IFRS). For the year, the company’s gross revenue reached ₹897.6 billion ($10.8 billion), reflecting a slight year-over-year decrease of 0.8%. In contrast, the fourth quarter gross revenue remained stable quarter-over-quarter at ₹222.1 billion ($2.7 billion).
Quarterly Financial Performance Insight:
The IT services segment, which is a significant part of Wipro’s business, showed a marginal quarterly revenue increase of 0.1% to $2,657.4 million, though it experienced a 6.4% decrease compared to the previous year. Net income for the quarter rose by 5.2%, amounting to ₹28.3 billion ($341.0 million), with earnings per share also increasing by 5.2% to ₹5.43 ($0.071).
Annual Overview and Operational Success:
The IT services operating margin for the fiscal year was reported at 16.1%, improving by 50 basis points, indicative of operational efficiency gains. Furthermore, Wipro achieved a significant increase in operating cash flows, which stood at ₹176.2 billion ($2,114.0 million), or 158.6% of net income, reflecting strong cash generation capabilities.
Bookings and Future Outlook:
Total bookings for the year amounted to $14.9 billion, with large deal bookings totaling $4.6 billion, up 17.4% from the previous year. Wipro anticipates IT Services segment revenue to be between $2,617 million and $2,670 million for the upcoming quarter ending June 30, 2024, signaling cautious optimism despite a challenging macroeconomic environment.
Strategic Insights and Leadership Comments:
Srini Pallia, CEO of Wipro, acknowledged the challenging conditions over the past year but expressed confidence in the opportunities ahead, particularly with the adoption of artificial intelligence technologies. Aparna Iyer, Wipro’s CFO, highlighted the company’s robust margin expansion and the generation of the highest operating cash flow in recent years, underlining strong financial health.
Key Strategic Deal Wins:
Wipro secured several significant deals across various sectors, enhancing its market position. Notable engagements include partnerships with a major healthcare and insurance organization to transform health services, a US-based health information technology company to scale its operations, and a large US-based health insurance provider to overhaul its technology and operations.
Innovative Solutions and Market Expansion:
Wipro’s focus remains on delivering innovative solutions, such as its work with a US-based telecom operator to overhaul IT and digital operations and with a multinational department store to develop an automation framework. These initiatives are designed to improve efficiency, reduce costs, and enhance customer and client experiences, supporting Wipro’s growth ambitions in diverse markets.