Indian IT giant Wipro Ltd revealed a dip in performance for the quarter ending December, with consolidated net profit dropping nearly 12% year-on-year to Rs 2,694 crore. The consolidated revenue also witnessed a 4.4% decline, amounting to Rs 22,205 crore. The figures align with market expectations. Despite these results, the board has recommended an interim dividend payout of Re 1 per share.
Sequentially, the revenue saw a 1.4% decline, while the profit showed a 1.8% rise. For the nine months ending December, Wipro’s consolidated revenue experienced a marginal 0.4% increase, reaching Rs 67,552 crore. However, net profit dipped by nearly 1% to Rs 8,211 crore.
Looking ahead to Q4, Wipro anticipates revenue from its IT Services business to be in the range of $2.62 billion to $2.67 billion. This translates to a -1.5% to +0.5% growth sequentially in constant currency terms, deviating slightly from analysts’ expectations.
In the December quarter, the IT services segment revenue declined 2.1% sequentially to $2.66 billion. Wipro had guided for a 3.5-1.5% sequential decline in IT services revenue for the same period. The IT services operating margin for the quarter contracted by 11 basis points sequentially to 16%.
Despite the challenges, Wipro secured deals worth $3.8 billion during the December quarter, showcasing resilience in its business. The company also noted a positive development in attrition levels, which reached a 10-quarter low in the three months ending December.
However, segment-wise performance highlighted declines in key sectors, with BFSI, manufacturing, and communications experiencing the steepest drop in revenue. Europe reported a 5% sequential drop in revenue, while the APMEA region saw a 6% fall. The Americas 2 market witnessed a 1.7% sequential decline, while Americas 1 grew by 1.8%.
Ahead of the earnings announcement, Wipro’s shares closed nearly 4% higher on the National Stock Exchange at Rs 465.45.
