Wipro net profit down 12% for third quarter, revenue at Rs 22,205 Cr

The overall performance of Wipro for the third quarter has been below par and its revenue has consistently declined over the last five quarters.

Wipro net profit down 12% for third quarter, revenue at Rs 22,205 Cr

Friday January 12, 2024 , 3 min Read

Wipro Ltd, one of the leading Indian IT services companies, saw a 12% decline in net profit on a year-on-year basis for the third quarter of the current fiscal as it continued to face a challenging business environment combined with a churn in its internal top management.

The net profit for the third quarter stood at Rs 2,694 crore. It has been a contrasting performance on the profitability front among the top four Indian IT services companies--Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro. Only HCLTech and TCS saw their net profit rising by 6% and 2%, respectively while Infosys saw a decline of 7%.

The consolidated revenue of Wipro for the third quarter stood at Rs 22,205 crore, a 5% decline year-on-year (YoY). The company core IT services revenue in US dollar terms stood at $2.6 billion, which was a 6% YoY drop.

Wipro Q3 profit

On the performance of the company for the third quarter, Wipro CEO Thierry Delaporte said, “Our investments in people, processes, and business operations are continuing to pay off.”

He further added, “In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20% year-to-date growth. Further, we are starting to see early signs of a return to growth in Consulting.”

Wipro continues to face a challenge in terms of quarterly performance as this is the fifth quarter in a row that its revenues are in declining mode. Along with a difficult external business environment, the company also saw certain churn in its top management layer.

The company’s total booking for the third quarter stood at $3.8 billion which was down 13.5% on a YoY basis. Even the operating margins came in at 16% during this period which was a decline from 16.2% a year ago.

Wipro CFO Aparna Iyer said, “We are building a more resilient, agile, and efficient organisation which has helped us sustain our margins at 16% despite revenue headwinds and absorbing the impact of the investments we are making for growth and people.”

Wipro revenues

These developments at Wipro had its bearing on the employee strength of the company, which stood at 240,234 at the end of third quarter, and this represented a fall of 21,875 over one year.

However, the only positive for Wipro has been a slight positive tweak in its revenue guidance for IT Services for the fourth quarter, which is in the range of minus 1.5% to plus 0.5%. Prior to this, it had given a guidance in the range of minus 3.5-1.5%.

Edited by Megha Reddy