Wipro Q4 Results: June quarter revenue may decline; CEO says macro environment uncertain

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Wipro Ltd. expects that its revenue may grow slightly or even decline during the June quarter. The company expects revenue to grow 0.5% or decline 1.5% on a constant currency basis during the June quarter.

A CNBC-TV18 poll had expected the company to guide for 0% to 2% revenue growth in the June quarter in constant currency terms.

Wipro’s revenue in US Dollar terms remained flat on a sequential basis at $2,657 million, compared to $2,656.1 million in December. In rupee terms, revenue fell 0.3% to ₹22,079.6 crore. Revenue on a constant currency basis fell for the fifth quarter in a row, declining 0.3% compared to the December quarter.

For the financial year 2024, Wipro ended with a constant currency revenue drop of 4.4%, lower than peers like TCS, where revenue grew 3.4% and Infosys, which reported a 1.4% growth.

EBIT or Earnings before Interest and Tax increased by 2.2% from the previous quarter to ₹3,619.5 crore. Wipro’s margin reported an expansion of 40 basis points to 16.4%, compared to 16% during the December quarter.

Wipro’s new MD & CEO Srini Pallia said that the financial year 2024 was a challenging year for the industry and the macroeconomic environment remains uncertain. “However, I am optimistic about the opportunities that lie ahead,” he said.

The company won deals worth $3.6 billion during the quarter, of which a third of $1.2 billion were large deals. Large deal wins increased by 31.1% on a sequential basis.

Voluntary attrition for the quarter remained steady at 14.2% on a trailing 12-month basis.

“We were expecting 0.5%-1.5% of quarter-on-quarter growth in Q1FY25, but the guidance seems to be lower than our expectations. So we can say that the uncertainty is still not over and we have to wait for a reversal of uncertainties,” said Omkar Tanksale of Axis Securities.

Wipro’s shares ended 1.75% higher on Friday ahead of their quarterly results at ₹452.10.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow