Despite fall in Q3 net, Wipro signals uptick in topline
IT major reported 12% fall in net profit at Rs2,694 cr in Dec qtr
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In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20% YTD 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 -- Thierry Delaporte, CEO&MD of Wipro
Bengaluru: IT major Wipro posted a mixed set of numbers in the third quarter with fall in revenue and net profit, but continued to report healthy deal bookings, indicating improving performance in the coming quarters.
The Bengaluru-headquartered firm also hinted some improvements in sentiment, especially in the consulting business that can put the company in good stead going ahead.
For the December quarter, Wipro reported a 12 per cent year-on-year fall in its net profit at Rs 2,694 crore.Consolidated revenue during this period came in at Rs22,205 crore, down 4.4 percent as compared to same period of last year.
IT services business, which contributes more than 95 per cent of the total revenue, stood at $2.66 billion in dollar term. This was 1.7 per cent decline in constant currency (CC) term as compared to previous quarter.Its peer Infosys saw its revenue declining 1 per cent in CCterm during this period. Wipro, however, expects its revenue growth rate to improve in the last quarter. It has now guided for a revenue growth of -1.5 percent to 0.5 percent for the end quarter of FY24.
Deal bookings of Wipro remained strong in the third quarter with a total deal booking of $3.8 billion for the third quarter. Out of the total bookings, large deals were valued at $0.9 billion during this period.
“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,” Thierry Delaporte, CEO and MD of Wipro said at the post-results press conference.
While refusing to comment on any individual employee, he said that Wipro had not dealt any body unusually in recent quarters. Recently, the company had filed a breach of employee contract case against its former CFO, Jatin Dalal as he moved to join rival Cognizant as its finance head.
On the overall demand environment, Delaporte said that it has not changed much with discretionary spend yet to come back to the market.
