Wipro announces Rs 12,000 crore share buyback; pegs Q1 IT service revenue growth at -1% to-3%

BENGALURU, APRIL 27: IT services company Wipro on Thursday posted a 0.4% y-o-y fall in its consolidated net profit for the fourth quarter ending March 31, 2023 at Rs 3,074 crore compared to Rs 3,087 crore in the year-ago period. Its revenue from operations stood at Rs 23,190 crore, an 11% increase y-o-y, for the fourth quarter.

The company has announced Rs 12,000 crore share buyback at buyback price of Rs 445.

Wipro’s IT Services Operating Margin for the quarter was at flat 16.3%. Thierry Delaporte, CEO and Managing Director, said, “We closed FY23 with the strongest ever bookings recorded in a year. We delivered two consecutive quarters of total bookings of over $4.1 billion. Our large deal order booking grew by 155% year-over-year for the quarter.”

“Compared to just a few years ago, we are seeing a visible change in the structure of our deals and our market position. We are winning large transformation deals, benefitting from a consolidating market, and deepening relationships with existing clients,” he added.

Jatin Dalal, Chief Financial Officer, said, “We continue to maintain our focus on operational improvements and productivity enhancements which led to our IT services margin exit at 16.3% in Q4 despite macro headwinds. We generated strong operating cash flows at 121% of our net income for the Quarter.”

The company’s voluntary attrition decreased 330 bps from the previous quarter, landing at 14.1% on a quarterly annualised basis and at 19.2% on a trailing twelve months basis.

Wipro expects Revenue from its IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million. This translates to sequential guidance of -3.0% to -1.0% in constant currency terms.

-TNIE