Wipro Q3 result: Gross revenue up 14.4% YoY; attrition rate moderates

The revenue expectations from IT Services business for the full year is set to be in the range of 11.5 per cent to 12.0 per cent, in constant currency terms

IT major Wipro registered a growth of 14.4 per cent in gross revenue in the third quarter of the current financial year (Q3FY23) compared to the same period last year (Q3FY22), the company said in a BSE filing. Its revenue from IT services was up 10.4 per cent in the same period. It has declared an interim dividend of Rs 1 per equity share.

The company's net income was up 2.8 per cent year-on-year (YoY) to Rs 3,050 crore in the quarter. The operating margins stood at 16.3 per cent.

The revenue expectations from the IT Services business for the full year are expected to be 11.5 per cent to 12.0 per cent in constant currency terms. 

The company's total headcount was down from 259,179 in the previous quarter to 258,744 in Q3FY23. The attrition, however, has fallen from 23 per cent in Q2FY23 to 21.2 per cent in Q3FY23.

On a YoY basis, too, the attrition has fallen from 22.7 per cent in Q3FY22. 

"Our Operating margins are now at 16.3 per cent, which is an expansion of 120 basis points from last quarter. This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies. We generated strong operating cash flows at 143 per cent of our net income for the quarter and our EPS increased by 14.6 per cent quarter-over-quarter," said Jatin Dalal, CFO of the company.

Thierry Delaporte, CEO and MD, said, "I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row. We are continuing to gain market share as a result of deepening client relationships and higher win rates."

"Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimization. Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market. As we move ahead, we expect to continue to benefit from these trends and help clients build future-proof, resilient enterprises," he added. 

The operating cash flow at 142.5 per cent of net income for the quarter was at Rs 4,350 crore ($526 million), an increase of 44.7 per cent YoY.