Wipro's ADR experienced a significant surge of nearly 17% following the announcement of its quarterly results for the period ending December 2023. On Friday, Wipro ADR traded at $6.28, marking an impressive increase of 16.95%.
Despite a marginal 1.4% quarter-on-quarter (QoQ) decrease, Wipro reported gross revenue of Rs 222.1 billion. The IT services segment revenue stood at $2,656.1 million, reflecting a 2.1% QoQ decline. Non-GAAP constant currency IT services segment revenue experienced a 1.7% QoQ decrease.
Total bookings amounted to $3.8 billion, demonstrating a slight 0.2% QoQ increase, with large deal bookings reaching $0.9 billion. The IT services segment's earnings before interest and taxes (EBIT) for the quarter were Rs 35.4 billion, marking a 1.8% QoQ decrease.
The operating margin for IT services in the quarter was 16.0%, witnessing an 11 basis points QoQ decline. Wipro reported a net income of Rs 26.9 billion ($323.9 million), reflecting a 1.8% QoQ increase. Earnings per share for the quarter stood at Rs 5.16 ($0.061), indicating a 2.0% QoQ increase.
Operating cash flows, at 177.3% of net income, amounted to Rs 47.9 billion ($575.7 million). Notably, voluntary attrition moderated to a 10-quarter low of 12.3% in Q3’24.
Looking ahead to the quarter ending March 31, 2024, Wipro provided guidance, stating an expected revenue range of $2,615 million to $2,669 million for the IT Services business segment. This translates to a sequential guidance of -1.5% to +0.5% in constant currency terms.
(With Agency Inputs)
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