Wipro's net profit moves up 2.8 pc to Rs 3,053 cr

Its revenue from operations rose 14.4 per cent annually to Rs 23,230 crore. The company recorded the upswing due to large deal signings.

The company's Gross Revenue reached Rs 232.3 billion, an increase of 3.1% QoQ and 14.4% YoY and its Services Segment Revenue increased to $2,803.5 million, an improvement of 6.2% YoY.

The IT Services Operating Margin for the quarter was at 16.3%, an increase of 120bps QoQ, the company said.

The Total Bookings was up by 26% and large deal bookings up by 69% YoY and announced an interim dividend of Rs 1 per equity share.

Talking about the performance for the quarter ended 31 December 2022, Wipro CEO and Managing Director Thierry Delaporte said, "I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion."

"We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row. We are continuing to gain market share as a result of deepening client relationships and higher win rates," he said.

Clients are turning to the company to help them manage an evolving macro environment and balance their transformation goals with cost optimization, Delaporte said.

"Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market. As we move ahead, we expect to continue to benefit from these trends and help clients build future-proof, resilient enterprises," he said.

Wipro Chief Financial Officer Jatin Dalal said the company's Operating margins are now at 16.3%, which is an expansion of 120 basis points from last quarter.

"This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies. We generated strong operating cash flows at 143% of our net income for the quarter and our EPS increased by 14.6% quarter-over-quarter," he said.

The company's outlook for the year ending 31 March 2023, Delaorte said that it expects Revenue from its IT Services business for the full year to be in the range of 11.5% to 12.0%, in constant currency terms.

He said Wipro continued its momentum in winning large deals with its customers. Giving details, Delaporte said a global leader in consumer brands selected Wipro to create a three-year consumer digital & technology transformation roadmap.

Wipro is deploying data analytics and AI to help put the consumer at the core of the company’s omni-channel direct-to-consumer operating model, he said.

The solution will help strengthen the company's brand building, innovation and sales capabilities and achieve its ambition of driving growth and loyalty among customers, Delaporte said.

Wipro also won a large strategic, multi-year engagement with a leading North American financial institution to modernize and transform their applications portfolio globally, he said.

The engagement will focus on digital transformation and automation for enhanced customer experience and business value creation, he added.

Delaporte said Wipro has been engaged by a US-based multinational technology conglomerate to build core product platforms and design, test and modernize unique silicon chips for its next generation connected products.

The project will tap into Wipro’s deep domain expertise in helping enterprises deploy high-performance, new-age chip solutions in sync with changing consumer and enterprise needs, he said.

"This win places Wipro Engineering Edge at the forefront of silicon innovation with low latency, low power, and ultra-reliable applications which will deliver unparalleled experiences for the end-consumers," he said.

Delaorte said the company continues to see increasing traction in digital oriented and other strategic deals as a joint Capco and Wipro team is supporting a large UK retail bank with their vision to become the pre-eminent UK digital insurer.

"Our mission is to drive the end-to-end transformation of the UK General Insurance business, leveraging our deep domain and technological expertise to completely rebuild the customer and employee experience, harnessing the power of data and automation," he said.

Moreover, one of the largest Australia-based energy transmission and distribution services businesses has selected Wipro as its strategic partner to integrate and transform its digital operating model, Delaporte said.

"Wipro will leverage innovation, simplification, and automation to deliver business impact and value through technology investments. In this outcome-based partnership, Wipro will help the customer enhance user experience and improve operational efficiency," he said.

Delaporte said Wipro has expanded its relationship with a leading Middle East-based airport management company with an end-to-end strategic partnership deal, which marks its largest deal in the airport domain in the Middle East.

"Wipro will run the airport’s end-to-end IT operations, upgrade technology infrastructure and expand digital services, leveraging futuristic technologies," he said.

(With UNI inputs)