New Delhi, Oct 12 (PTI) IT services major Wipro Ltd on Wednesday reported a 9.3 per cent drop in its September quarter net profit, weighed down by rising staff expenses and lower non-US earnings.
Profit attributable to equity shareholders of the company at Rs 2,659 crore in July-September was 9.27 per cent lower than Rs 2,930 crore in the year-ago period, the company said in a statement.
The Bengaluru-based company’s revenue from operations stood at Rs 22,539.7 crore, up 14.60 per cent growth over Rs 19,667.4 crore in the previous year.
Sequentially, the revenue increased 4.69 per cent from Rs 21,528.6 crore in the previous quarter while profit was up 3.71 per cent from Rs 2,563.6 crore in the April-June quarter.
“The solid growth in our bookings, large deal signings, and revenues underscores our improved market competitiveness and enhanced value proposition,” said Thierry Delaporte, CEO and Managing Director.
Wipro said IT services segment revenue was at USD 2,797.7 million, an increase of 8.4 per cent year on year (YoY). Constant currency IT services segment revenue increased by 4.1 per cent quarter on quarter (QoQ) and 12.9 per cent YoY.
Order bookings (total contract value) during the quarter grew by 23.8 per cent while large deal books grew by 42 per cent.
Delaporte said Wipro signed 11 large deals worth USD 725 million.
“Our ongoing investments in high-growth strategic areas have allowed us to steadily increase our win rate and enhance the quality of our pipeline. As a result of these efforts and our sharp focus on operational excellence, we are now seeing an improvement in our margins,” he said.
Wipro in its outlook for the December quarter said it expects revenue from our IT services business to be in the range of USD 2,811 million to USD 2,853 million. This translates to a sequential growth of 0.5 per cent to 2 per cent.
Operating margin for the quarter came in at 15.1 per cent, an increase of 16 bps quarter-on-quarter. Operating cash flows were 180.6 per cent of net income for the quarter at Rs 4,800 crore or USD 590 million.
The firm promoted over 10,000 employees and its attrition rates recorded a third consecutive quarter of moderation.
Jatin Dalal, Chief Financial Officer, said, “We achieved margins of 15.1 per cent in Q2 after absorbing the impact of salary increases and promotions.
“Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our Operating Cash Flows was robust and at 181 per cent of our net income for the year.” The attrition rate marginally dropped to 23 per cent in Q2, from 23.3 per cent in the preceding quarter.
Hiring was at a slower pace for the quarter ending September 30, 2022. Wipro added 605 net employees.
As of September 30, 2022, Wipro’s employee count in IT services increased to 259,179 from 258,574 at the end of June.
Wipro’s voluntary attrition measured in the trailing 12 months for the quarter was at 23.0 per cent — a moderation of 30 bps from the June 2022 quarter. Its attrition rate was low at 20.5 per cent during Q2 of FY22.
The company had added 15,446 employees in Q1FY23, while it onboarded more than 10,000 freshers during this period.
Wipro said earnings from its clients in non-US markets fell in the second quarter.
Earnings from Europe dropped to Rs 787.5 crore, from Rs 918.6 crore a year back.
Similarly, the Asia Pacific/Middle East/Africa (APMEA) region saw lower earnings of Rs 219.4 crore, as compared to Rs 302.8 crore last year. PTI ANZ MR
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