Indian IT software services company Wipro reported that gross revenue reached $232.3 billion, an increase of 14.4% and 3.1% quarter-on-quarter (QoQ) in the third quarter of the current fiscal year, 2023. IT service revenue increased by 10.4% during the same time period.
In Q2 FY23, the company performed poorly, with profit decreasing by 9.3% and 13% revenue growth, year-on-year.
The company's net income in Q3 increased 2.8% YoY to Rs 3,050 crore.
Constant currency revenue from the IT Services division is expected to range from 11.5% to 12 % for the entire year. IT Services Segment Revenue rose by 6.2% YoY to $2,803.5 million.
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The quarter's net income increased by 14.8% QoQ and 2.8% YoY to $369.1 million. Earnings per share for the quarter were $5.57 ($0.071), up 2.6% YoY and 14.6% QoQ. Operating Cash Flows for the quarter were $43.5 billion ($526.0 million1), up 44.7% year over year, or 142.5% of Net Income. Voluntary attrition decreased 180 bps from the previous quarter to reach 21.2% for the trailing 12 months.
Total bookings rose by 26%, and large deal bookings by 69%. Commenting on this, CEO and MD Thierry Delaporte said, “We improved our margins by 120 basis points, and our attrition moderated for the fourth quarter in a row. We continue gaining market share due to deepening client relationships and higher win rates."
The top five clients grew 15.7% YoY, while the top 10 clients grew 14.7% YoY in constant currency terms, underscoring deepening relationships with top strategic clients.
Wipro also announced an interim dividend of ₹1 ($0.0121) per equity share/ADS
At Rs 4,350 crore ($526 million), or 142.5% of net income for the quarter, operating cash flow increased by 44.7% year over year.
Attrition Drops, 435 Employees Vanished
The attrition rate has declined YoY to 22.7% in Q3FY22.
The total employee count for the company dropped by 435 to 258,744 in Q3 FY23 from 259,179 in the previous quarter. However, the attrition rate has decreased from 23.0% in Q2FY23 to 21.2% in Q3 FY23.
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