Wipro net profit down 8% in Q4 FY24; company provides weak revenue guidance
The performance of Wipro in the four quarters of FY24 has been lacklustre, with declining revenue.
Wipro, one of India's top IT services companies, continues to struggle with financial performance as both its net profit and revenue declined for the fourth quarter of FY24, prompting the company to provide weak growth guidance for FY25.
The firm reported a net profit of Rs 2,835 crore for the fourth quarter of FY24, a year-on-year (YoY) decline of 7.7%. Its revenue dropped 4.2% on a YoY basis to touch Rs 22,208 crore.
The company expects the IT services business segment to be in the range of $2,617 million to $2,670 million which translates to a sequential guidance of (-)1.5% to +0.5% in constant currency terms.
Wipro CEO Srini Pallia said, “FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about the opportunities that lie ahead. We are on the brink of a major technological shift. Artificial intelligence is transforming our clients’ needs as they seek to harness its power for competitive advantage and enhanced business value.”
The company noted the operating profit margins for the fourth quarter rose by 40 basis points for the fourth quarter to touch 16.4%.
The performance of Wipro in the four quarters of FY24 has been lacklustre. At the end of the fourth quarter of FY23, it registered a revenue of $2839.5 million; it fell further to $2657.4 million in the fourth quarter of FY24.
This underperformance of Wipro was reflected in the employee headcount number as it ended FY24 at 2,34, 054, with a reduction of 24,516.
This reduction in headcount is a reflection of the challenges that the Indian IT industry continues to face; Wipro’s peers TCS and also saw a decline in employee numbers. TCS's employees count was down by 13,249, while Infosys's headcount fell by 25,994.
The big challenges for Wipro come from its largest market and business segment. The North American geography declined in the fourth quarter by 5.7%, while its largest business segment—financial services—de-grew by 8.9%.
However, Wipro said large deal bookings for FY 24 was $4.6 billion, marking a YoY increase of 17.4%.
Edited by Affirunisa Kankudti