Wipro Q1 PAT slips 17% QoQ to Rs 2,564 cr

The IT major's consolidated net profit dropped 16.96% to Rs 2,563.6 crore in Q1 FY23 as against Rs 3,087.3 crore in Q4 FY22.

Revenue from operations increased 3.21% quarter on quarter (QoQ) to Rs 21,528.6 crore in Q1 FY23 over Q4 FY22.

On a year on year (YoY) basis, the IT firm's net profit tumbled 20.68% while revenue jumped 17.95% in Q1 FY23.

In dollar terms, Wipro's gross revenue was $2.7 billion, registering a growth of 17.9% YoY. IT Services segment revenue stood at $2,735.5 million, an increase of 0.51% QoQ and 13.3% YoY.

IT Services operating margin for the quarter was at 15%, down 200 bps QoQ. Non-GAAP constant currency IT Services segment revenue increased by 2.1% QoQ and 17.2% YoY.

For the quarter ending 30 September 2022, Wipro expects revenue from IT Services business to be in the range of $2,817 million to $2,872 million. This translates to a sequential growth of 3% to 5%.

The company said that its closing strength of employees for IT Services was at 258,574, an increase of 15,446 QoQ. TTM attrition rate was 23.3%.

Thierry Delaporte, CEO and managing director said, We have made significant investments in Wipro's growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better.

Jatin Dalal, chief financial officer said, We are consistently investing in solutions and capabilities for our growth to further strengthen our position of being a strategic partner for our clients. At 15% of operating margins, we believe that we have bottomed out.

Wipro is a leading global information technology, consulting and business process services company.

Shares of Wipro were up 1.63% to settle at Rs 412.20 on the BSE.

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