Wipro net income up 12% YoY in Q1
NEW JERSEY, UNITED STATES & BANGALORE, INDIA — Tech services and consulting giant Wipro Limited reported a promising outcome for the quarter ending June 30, 2023.
The firm’s net income showed a promising 12% year-on-year (YoY) growth, alongside total quarter bookings amounting to US$3.7 billion, up by 9% YoY, marking the highest increase in large deal bookings in the past two years.
Quarterly gross revenue ascended to ₹228.3 billion (US$2.8 billion), indicating a 6% YoY growth.
The revenue from IT services also climbed, albeit at a slower pace of 0.8%, reaching US$2.7 million. There was also a 1.1% YoY gain in non-GAAP constant currency IT services segment revenue.
Meanwhile, the company boasted large deal bookings, a significant highlight, amassing US$1.2 billion – a 9% YoY leap. Wipro’s operating margin swelled to 16%, marking a YoY increase of 112 bps, and operating cash flows hovered at 130% of net income, translating to ₹37.5 billion (US$457.1 million).
Thierry Delaporte, CEO and Managing Director, ensured that Wipro’s momentum in securing new business remained robust despite a dip in client spending.
Delaporte added that the launch of Wipro ai360 and their US$1 billion AI investment solidifies the firm’s position as “a leading transformation partner that delivers the results and innovation [the] clients need to future-proof their businesses.”
Meanwhile, CFO Jatin Dalal credited the company’s relentless attention to operational improvements for preserving margins amidst the revenue environment.
Wipro predicts the September quarter’s IT services sector revenue to fall between US$2.7 billion and US$2.8 billion, denoting a sequential shift from -2.0% to +1.0% in constant currency terms.
