Wipro Q4FY23 net profit falls to Rs 3,149 crore, revenue at Rs 23,190 crore; Rs 12,000 crore buyback approved

Wipro Q4FY23 net profit falls to Rs 3,149 crore, revenue at Rs 23,190 crore; Rs 12,000 crore buyback approved

Wipro on Thursday reported its fiscal fourth quarter net profit at Rs 3,149 crore, down 10 per cent from Rs 3,524 crore in the same quarter last year. The IT major posted a revenue of Rs 23,190 crore in Q4FY23, up 11 per cent from Rs 20,860 crore in the fourth quarter of FY22. This is marginally lower than the CNBC TV18 poll estimate of Rs 23,317 crore. The company has also approved a buyback of up to Rs 12,000 crore of shares at a price of Rs 445 per share. This is the highest in the previous four instances and the previous buyback in October 2020 was of Rs 9,500 crore. Earlier last week, Wipro had said that it will consider a proposal to buyback equity shares at its board meeting to be held over April 26-27. 

Wipro’s performance across business segments

In terms of deals, Wipro closed FY23 with total bookings of over $4.1 billion. While the total bookings were up by 29 per cent, large deal bookings were up by 155 per cent. “We closed FY23 with the strongest ever bookings recorded in a year. Our large deal order booking grew by 155 per cent year-over-year for the quarter,” said Thierry Delaporte, CEO and Managing Director, Wipro. “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,” Thierry Delaporte added. 

In terms of attrition rate, Wipro said that the voluntary attrition decreased 330 bps from the previous quarter, landing at 14.1 per cent on a quarterly annualised basis and at 19.2 per cent on a trailing twelve months basis .

Outlook for the next quarter

For the quarter ending June 30, 2023, Wipro is expecting 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.