- IT services segment operating margin increases 40 bps QoQ.
- Net income increases 5.2% QoQ.
- FY 24 Large deal bookings at $4.6 billion, a YoY increase of 17.4%.
- Operating cash flows at 158.6% of net income for the year.
Highlights of the Results
Results for the Quarter ended March 31, 2024:
- Gross revenue reached ₹222.1 billion ($2.7 billion1), flat QoQ.
- IT services segment revenue was at $2,657.4 million, an increase of 0.1% QoQ and decrease of 6.4% YoY.
- Non-GAAP2 constant currency IT Services segment revenue decreased 0.3% QoQ, and 6.6% YoY.
- Total bookings3 was at $3.6 billion. Large deal bookings4 was at $1.2 billion, increase of 31.1% QoQ and 9.5% YoY.
- IT services operating margin5 for the quarter was at 16.4%, up by 40 bps QoQ.
- Net income for the quarter was at ₹28.3 billion ($341.0 million1), an increase of 5.2% QoQ.
- Earnings per share for the quarter was at ₹5.43 ($0.071), an increase of 5.2% QoQ.
- Operating cash flows of ₹52.2 billion ($626.1 million1), an increase of 9.0% QoQ and at 182.6% of Net Income for the quarter.
- Voluntary attrition was at 14.2% on a trailing 12-month basis.
Results for the Year ended March 31, 2024:
- Gross revenue reached ₹897.6 billion ($10.8 billion¹), a decrease of 0.8% YoY.
- IT services segment revenue was at $10,805.3 million, a decrease of 3.8% YoY.
- Non-GAAP² constant currency IT Services segment revenue decreased 4.4% YoY.
- Large deal bookings4 was at $4.6 billion, up by 17.4% YoY. Total bookings3 was at $14.9 billion decrease of 5.5% YoY.
- IT services operating margin5 for the year was at 16.1%, up by 50 bps YoY.
- Net income for the year was at ₹110.5 billion ($1,325.3 million¹), a decrease of 2.7% YoY.
- Earnings per share for the year was at ₹20.89 ($0.251), an increase of 0.8% YoY.
- Operating cash flows of ₹176.2 billion ($2,114.0 million1), an increase of 34.9% YoY and at 158.6% of Net Income for the year.
Wipro expects revenue from its IT Services business segment to be in the range of $2,617 million to $2,670 million*. This translates to sequential guidance of (-)1.5% to +0.5% in constant currency terms.
* Outlook for the Quarter ending June 30, 2024, is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.08, AUD/USD at 0.66, USD/INR at 83.19 and CAD/USD at 0.74
Capital Allocation:
The Board of Directors confirmed the interim dividend of ₹1 declared by the Board earlier at its meeting held on January 12th, 2024, shall be considered as the final dividend for the financial year 2023-24.
1. For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = ₹83.34, as published by the Federal Reserve Board of Governors on March 31, 2024. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2024, was US$1= ₹83.09
2. Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period.
3. Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2.
4. Large deal bookings consist of deals greater than or equal to $30 million in total contract value.
5. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.
6. Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP.
7. Effective April 1, 2023, Wipro merged its ISRE segment with our IT Services segment. The YoY growth rates for the quarter ended March 31, 2024 were computed by rebase lining Q4’23 numbers.
1. For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = ₹83.34, as published by the Federal Reserve Board of Governors on March 31, 2024. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2024, was US$1= ₹83.09
2. Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period.
3. Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2.
4. Large deal bookings consist of deals greater than or equal to $30 million in total contract value.
5. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.
6. Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP.
7. Effective April 1, 2023, Wipro merged its ISRE segment with our IT Services segment. The YoY growth rates for the quarter ended March 31, 2024 were computed by rebase lining Q4’23 numbers.
IT Products
- IT Products segment revenue for the quarter was ₹1.2 billion ($13.9 million¹)
- IT Products segment results for the quarter were ₹0.14 billion ($1.72 million¹)
- IT Products segment revenue for the year was ₹4.1 billion ($49.5 million1)
- IT Products segment results for the year were (-₹0.37 billion) (-$4.45 million¹)
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