July 19, 2024
East Brunswick, N.J., United States & Bangalore, Karnataka, India
Wipro Limited, a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2024.
Highlights of the Results
Results for the Quarter ended June 30, 2024:
- Gross revenue was at Rs 219.6 billion ($2,635.8 million1), a decrease of 1.1% QoQ and 3.8% YoY.
- IT services segment revenue was at $2,625.9 million, a decrease of 1.2% QoQ and decrease of 5.5% YoY.
- Non-GAAP2 constant currency IT Services segment revenue decreased 1.0% QoQ, and 4.9% YoY.
- Total bookings3 was at $3,284 million. Large deal bookings4 was at $1,154 million, a decrease of 3.1% QoQ and 3.6% YoY.
- IT services operating margin5 for the quarter was at 16.5%, an increase of 0.1% QoQ and 0.4% YoY.
- Net income for the quarter was at Rs 30.0 billion ($360.4 million1), an increase of 5.9% QoQ and 4.6% YoY.
- Earnings per share for the quarter was at Rs 5.75 ($0.071), an increase of 5.9% QoQ and 9.9% YoY.
- Operating cash flows of Rs 40.0 billion ($479.0 million1), an increase of 6.5% YoY and at 131.6% of Net Income for the quarter.
- Voluntary attrition was at 14.1% on a trailing 12-month basis.
Outlook for the Quarter ending September 30, 2024
We expect revenue from our IT Services business segment to be in the range of $2,600 million to $2,652 million*. This translates to sequential guidance of (-)1.0% to +1.0% in constant currency terms.
* Outlook for the Quarter ending September 30, 2024, is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.08, AUD/USD at 0.66, USD/INR at 83.27 and CAD/USD at 0.73
Performance for the Quarter ended June 30, 2024
Srini Pallia, CEO and Managing Director, said, “We recorded another quarter of total large deal bookings over $1 bn, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and preparing our workforce for an AI-first future.”
Aparna Iyer, Chief Financial Officer, said, “We continued to expand our margins to 16.5% in Q1’25, this is a 42-bps improvement YoY. Our margin performance is also reflected in our EPS increase of 10% YoY. Our operating cash flows continue to be strong at 131.6% of our net income which takes our current investment and cash balance to $5.4 billion.”
For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = Rs 83.33, as published by the Federal Reserve Board of Governors on June 30, 2024. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2024, was US$1= Rs 83.38
Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period.
Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2.
Large deal bookings consist of deals greater than or equal to $30 million in total contract value.
IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.
Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP.
Highlights of Strategic Deal Wins
In the first quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
Wipro has been awarded a $500 million deal by a leading U.S. communications services provider. This is a five-year contract to provide managed services for select products and industry-specific solutions.
Wipro was selected by a global leader in technology to reimagine its hyperscaler customer experience centers through AI-powered operations. Wipro will enable real-time business insights, scale talent, and reduce cost of operations for the client’s centers across the world. Additionally, the team will modernize the client’s global R&D lab infrastructure and accelerate innovation with rapid prototyping and increased speed to market of new products and services.
A US-based health insurance company has engaged Wipro to deliver end-to-end transformation of its medical claims processing. Over this multi-year deal, Wipro will implement customized AI-based solutions, for claims processing, error prediction and agent assist. Wipro’s AI solution will deliver higher accuracy in claims processing leading to a reduction in out-of-compliance claim appeals and an overall decrease in the cost of operations. Wipro is leveraging GenAI and AI to accelerate training and optimize resource allocation for the client.
A US-based automotive Tier 1 supplier has selected Wipro to streamline its global technology services and rationalize its applications including both Engineering and business to support its portfolio. The Wipro team will develop a solution leveraging automation and AI to improve the client’s customer experience and reduce its overall operating costs, enhance innovation as well as improve project delivery.
A leading provider of innovative flash memory solutions has selected Wipro as its strategic partner for Product Development and Engineering. The Wipro team will establish a Center of Excellence for Solid State Drive SSD engineering by leveraging its deep domain expertise on storage firmware, embedded software, system validations and GenAI methodologies to enhance the client’s product development life cycle.
Wipro has secured a transformational engagement with a state government organization in Australia to deliver a centralized road asset management system. This system will help the client make reliable and fast strategic decisions for the future of its road network. The ‘One Wipro’ team, with Rizing, Wipro Enterprise Futuring and Domain & Consulting, will improve management of road assets like bridges, tunnels, traffic assets, etc., through integration and automation of the road asset register. The team will also deliver new capabilities to support business needs like staff mobility, leading to improved user experience with an intuitive map driven approach.
A US-based payment services corporation has selected Wipro to enhance its applications to provide more resilient services, improve performance and scalability to support projected business growth. In partnership with the client, the Wipro team will develop and deploy solutions utilizing proven Continuous Integration & Deployment pipelines, leveraging AI. As a result, the client will have better visibility of compliance requirements and see improved agility and productivity.
A US-based global technology company has selected Wipro to develop and enhance its Silicon IP lifecycle. The Wipro team will deploy a comprehensive end-to-end solution that includes silicon engineering services encompassing areas such as analog circuit, layout, and structural designs. The project will result in increased agility and transparency across the Silicon IP lifecycle.
An Australian public health services organization has chosen Wipro to migrate its legacy systems and automate its workforce management process. The Wipro team will build a solution that connects the aged care community with essential providers and services. The client will see enhanced accessibility and exchange of medical data, improved quality, and safety of primary healthcare services, as well as increased innovation and efficiency through digital technologies.
A global pharmaceutical organization has expanded its existing relationship with Wipro, selecting it to deliver persona-based services for their Service Desk and onsite Field Support Services globally. The programme includes 12 transformation initiatives to modernize the client’s operating model and improve its user experience through Gen AI use cases, including autopilot-based provisioning, and remote management of applicable devices through zero-touch remote IT services resolution. As a result of this project, the client will see enhanced employee experience and increased productivity.
A Europe-based investment management company has selected Wipro to manage its end-to-end infrastructure. The Wipro team will consolidate vendors across the client’s IT operations and develop AI tools to simplify its operations. This project will improve the client’s operational stability and security, reduce costs, and increase its cost efficiency by up to 30%.
One of Europe’s largest providers of holiday parks has selected Wipro to integrate its business functions into a single set of standardized technology platforms with a redesigned operating model. The Wipro team will design the business processes, build and roll out core business platforms for the client’s commerce, finance, and HR functions. The team will also build a data platform to gain better business insights and roll out a change management program to ensure a smooth transition. This project will deliver harmonized and integrated systems enabling the client’s future business growth.
A leading US-based technology company has selected Wipro to provide end-user sales and support services for its Spanish and Portuguese-speaking customers in Latin America. Wipro will deploy its trusted digital marketing advisors to support end users’ marketing presence. The team will also help in boosting advertising revenue growth through ad campaign optimization, market planning and book management.
Analyst Recognition
- Wipro was rated as a Leader in Avasant’s Applied AI Services 2024 RadarView™
- Wipro was designated as a Leader in Avasant’s Cybersecurity Services 2024 RadarView™
- Wipro was recognized as a Leader in IDC MarketScape: Worldwide Consulting and Digital Services Providers for the
- Upstream Oil and Gas Industry 2024 Vendor Assessment (Doc # US51004123 May 2024)
- Wipro was recognized as a Leader in Everest Group’s Mainframe Services PEAK Matrix® Assessment 2024
- Wipro was ranked as a Leader in Avasant’s Manufacturing Digital Services 2024 RadarView™
- Wipro was rated as a Leader in ISG Provider Lens™ – Digital Engineering Services 2024 (all quadrants)
- Wipro was classified as a Leader in ISG Provider Lens™ – Microsoft Cloud Ecosystem 2024 (multiple quadrants)
- Wipro was recognized as a Leader in ISG Provider Lens™ – SAP Ecosystem 2024 (multiple quadrants)
- Wipro was featured as a Horizon 3 – Market Leader in the HFS Horizons: HCP Service Providers, 2024 report
- Wipro was classified as a Leader in Avasant’s Banking Process Transformation 2024 RadarView™
- Wipro was positioned as a Leader in the 2024 Gartner® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing
- Wipro was rated as a Leader in ISG Provider Lens™ – Procurement Services 2024 (all quadrants)
Source & Disclaimer: *Gartner, “Magic Quadrant for Finance and Accounting Business Process Outsourcing”, Jan Ambergen, et al, 21 May 2024.
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