Wipro Announces Results for the Quarter-Ended December 31, 2023

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2023.

Highlights of the Results

Results for the Quarter ended December 31, 2023:

  1. Gross revenue reached Rs 222.1 billion ($2.7 billion1), a decrease of 1.4% QoQ.
  2. IT services segment revenue was at $2,656.1 million, a decrease of 2.1% QoQ.
  3. Non-GAAP2 constant currency IT Services segment revenue decreased 1.7% QoQ.
  4. Total bookings3 was at $3.8 billion, up by 0.2% QoQ and large deal bookings4 was at $0.9 billion.
  5. IT services segment EBIT for the quarter was Rs 35.4 billion ($425.8 million1), a decrease of 1.8% QoQ.
  6. IT services operating margin5 for the quarter was at 16.0%, down by 11 bps QoQ.
  7. Net income for the quarter was at Rs 26.9 billion ($323.9 million1), an increase of 1.8% QoQ.
  8. Earnings per share for the quarter was at Rs 5.16 ($0.061), an increase of 2.0% QoQ.
  9. Operating cash flows at 177.3% of Net Income for the quarter was at Rs 47.9 billion ($575.7 million1).
  10. Voluntary attrition6 has continued to moderate QoQ, coming in at 10-quarter low of 12.3% in Q3’24.
  11. Interim dividend declared of Rs 1 ($0.0121) per equity share/ADS.

Outlook for the Quarter ending March 31, 2024

We expect revenue from our IT Services business segment to be in the range of $2,615 million to $2,669 million*. This translates to sequential guidance of -1.5% to +0.5% in constant currency terms.

* Outlook for the Quarter ending March 31, 2024, is based on the following exchange rates: GBP/USD at 1.24, Euro/USD at 1.08, AUD/USD at 0.65, USD/INR at 83.54 and CAD/USD at 0.72

Performance for the Quarter ended December 31, 2023

“Our investments in people, processes, and business operations are continuing to pay off,” said Thierry Delaporte, CEO and Managing Director. “In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20 percent year-to-date growth. Further, we are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business.

“Under our ai360 strategy, AI is now embedded across most of our existing solutions and client offerings. We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalize on emerging opportunities, as the macro environment improves.”

Aparna C. Iyer, Chief Financial Officer, said,“I am pleased with our rigor of execution across all financial metrics – revenue, margin, EPS, and cash flow. We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people.”

IT Products

  1. IT Products segment revenue for the quarter was Rs 0.8 billion ($9.7 million1)
  2. IT Products segment results for the quarter was a gain of Rs 0.11 billion ($1.37 million1)

Please refer to the table at the end for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

  1. 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 83.19, as published by the Federal Reserve Board of Governors on December 31, 2023. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2023, was US$1= Rs 83.40.
  2. Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period.
  3. 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.
  4. Large deal bookings consist of deals greater than or equal to $30 million in total contract value.
  5. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.
  6. Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP.
  7. Effective April 1, 2023, we merged our ISRE segment with our IT Services segment. The YoY growth rates for the quarter ended December 31, 2023, were computed by rebase lining Q3’23 numbers.

Highlights of Strategic Deal Wins

In the third quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:

  1. Wipro was selected by a US-based member-governed health insurance non-profit to deploy an integrated Business Platform as a Service to deliver end-to-end plan administration services. Leveraging its proprietary Individual & Family Health Insurance Exchange platform, Wipro will help streamline the enrollment, billing and claims process for the client. The platform will also use AI to reconcile premiums with subsidies offered by the government to minimize costs for members. The client will benefit from increased satisfaction amongst providers, clinics and pharmacies and improved compliance with evolving regulations.
  2. A global technology leader has chosen Wipro to develop capabilities for their AI-driven orchestration platform. Wipro will collaborate closely with the client to integrate various systems involved in the process lifecycle, simplifying navigation, and streamlining workflows for end-users. This will improve overall productivity and accuracy, enabling tasks to be completed more efficiently. Additionally, this partnership will allow the client to expand the market reach of their solution.
  3. An American Retail Bank has chosen Wipro as the end-to-end product development partner for the client’s Payments & Digital Platform groups. Capco, Designit, and Wipro teams will provide fully-staffed, cross-functional working groups to deliver on key initiatives across the bank – including cloud migration, marketing analytics, and relationship management modernization. The combined teams will bring architecture, design, and tech delivery capacity, alongside banking domain expertise, and will be underpinned by an offshore delivery model. The resulting effort will deliver immediate efficiencies and power the maturity of the client’s Digital platforms.
  4. A Middle Eastern financial regulatory body has selected Wipro as a technology partner to strengthen its IT applications and infrastructure. Wipro will create a unique solution to support the client’s business applications, infrastructure technology, service desk, and IT operating model. Wipro will also provide a host of value-added components, including dedicated consulting services from Capco which is aimed at business and IT strategic transformation including data, supervisory tech, and AI. The resulting increased efficiency and productivity will help the client attract both domestic and foreign investments to the region.
  5. One of the world’s largest wind turbine manufacturers has selected Wipro to transform its Enterprise Resource Planning landscape to harmonize the Finance, Manufacturing, Sales, Supply Chain and Customer service processes. Wipro will deliver a tailored solution that unifies the client’s regional platforms, while matching the individual needs of the business units. This will empower each unit with data-driven decision-making while improving the speed-to-market, as well as supporting the rapid addition of new product lines. Leveraging its Controlled Global Template and Industrialized Rollout Framework, Wipro will ensure shorter and smoother global rollouts with increased business user satisfaction for the client.
  6. A leading automotive manufacturer’s financial services organization selected Wipro to consolidate their IT services, with the goal of harmonizing their IT processes across the entire enterprise, creating new synergies across functions, and a consolidation of current supplier landscape. The project involves the transformation towards a managed service operation model and providing services for the client’s core infrastructure, central platform services, and end-user computing services. The solutions delivered by the Wipro team will help the client realize its business transformation goals and support their evolution to a mobility services provider.
  7. An international banking institution has selected Wipro to transform its business applications portfolio. The Wipro team will create a bespoke, automation-based solution to assess, transform, and manage the client’s applications estate. The project will lead to increased operational efficiency, cost reduction, and increased cloud adoption.
  8. Wipro was selected by one of the world’s largest airlines to deliver omni-channel customer services support across its e-commerce and loyalty program. Through this engagement, Wipro will streamline the customer service process for agents, provide automated visualization for performance management, and track quality through enhanced reporting and analysis. The agents will be trained through gamified learning modules, which will quickly lead to improved processes, reduced wait times and better end-customer experience.
  9. A US-based technology services company has selected Wipro to augment its navigation assistance offering. For the client’s end users, the Wipro team will improve navigation and create new map features, enhancing the search functionality of 2D and 3D mapping, as well as improving transit, indoor and business listings. For the client’s B2B customers, Wipro will assist in building customized features targeting Autonomous Driving & Simulation (ADAS) technology for the transportation, hospitality, and automotive sectors. The client can expect to see enhanced data and product quality, as well as monetization of their offering.
  10. An integrated healthcare network has selected Wipro to deliver end-to-end managed services to transform their IT environment and digital infrastructure. As part of this project, the Wipro team will leverage hyper-automation to help the client improve customer service and overall efficiency, increase speed and scalability, as well as achieve cost optimization.
  11. A US-based education assistance agency has selected Wipro to deliver digitally enabled customer care services. The Wipro team will build a custom solution to transform the client’s end-user journey. The solution will also ensure better contract compliance, more profitable service delivery, improved customer satisfaction, and enhance the client’s overall industry ranking.
  12. A North American banking group has selected Wipro to test and improve their overall technology efficiency. The Wipro team will improve the testing automation efficiency of their legacy technology stack. This will enable the business to onboard new applications within its infrastructure while improving year-on-year automation efficiency across the client’s portfolio.
  13. A Swiss multinational corporation has selected Wipro to be its Global Network systems integrator to refresh & transform their 600+ sites to be cloud native. The Wipro team will build a completely customized solution that will allow for flexibility and speed of execution in a time-bound manner using Wipro accelerators. This integration project will align with the client’s overall cloud strategy, increase their speed to market, and will produce cost savings of up to 20 percent.

Analyst Recognition

  1. Wipro was positioned as a Leader in Avasant’s Data Management and Advanced Analytics Services RadarView™ 2023
  2. Wipro was rated as a Leader in ISG Provider Lens™ – Future of Work Services and Solutions 2023 – Germany (multiple quadrants)
  3. Wipro was recognized as a Leader in IDC MarketScape: Worldwide Managed Public Cloud Services 2023 Vendor Assessment (Doc # US49116023 Nov 2023)
  4. Wipro was featured as a Horizon 3 – Leader in HFS Horizons: Generative Enterprise™ Services, 2023
  5. Wipro was ranked as a Leader in Avasant’s Digital Talent Capability RadarView™ 2023 – 2024
  6. Wipro was positioned a Leader in Everest Group’s Cloud Security Services PEAK Matrix® Assessment 2023
  7. Wipro was designated a Leader in Everest Group’s Cloud Services in Insurance PEAK Matrix® Assessment 2023
  8. Wipro was named a Leader in IDC MarketScape: Worldwide Supply Chain All Other Ecosystems Services 2023 Vendor Assessment (Doc # US51314123 Nov 2023)
  9. Wipro was recognized as a Leader in ISG Provider Lens™ – Oil and Gas Industry Services and Solutions 2023 (all quadrants)
  10. Wipro was positioned as a Leader in ISG Provider Lens™ – AWS Ecosystem Partners 2023 – Germany (all quadrants)
  11. Wipro was positioned as a Horizon 3 – Leader in HFS Horizons: Retail and CPG Service Providers, 2023
  12. Wipro was positioned as a Leader in the 2023 Gartner® Magic Quadrant™ for Managed Network Services

Newsletter Updates

Enter your email address below and subscribe to our newsletter