Wipro Q3 revenue rises 3.8% QoQ, 5.5% YoY

Wipro posted a gross revenue of ₹235.6 billion ($2.62 billion), up 3.8 per cent quarter-on-quarter and 5.5 per cent year-on-year. Revenue from the IT services segment stood at $2.64 billion, rising 1.2 per cent sequentially and 0.2 per cent from a year ago.

In constant currency terms, IT services revenue increased 1.4 per cent quarter-on-quarter but declined 1.2 per cent year-on-year, reflecting ongoing pressure on global technology spending.

Total deal bookings for the quarter came in at $3.34 billion, down 5.7 per cent year-on-year in constant currency, while large deal bookings fell 8.4 per cent to $871 million, underscoring a cautious client environment and elongated decision cycles.

Despite the muted demand backdrop, Wipro improved its operating performance. IT services operating margin rose to 17.6 per cent, expanding 90 basis points quarter-on-quarter and 10 basis points year-on-year, aided by cost optimisation and efficiency measures.

Net income for the quarter declined 3.9 per cent sequentially and 7 per cent year-on-year to ₹31.2 billion, with earnings per share falling to ₹2.98. Adjusted for the impact of labour code changes, net income stood at ₹33.6 billion, up 3.6 per cent quarter-on-quarter and marginally higher year-on-year, with adjusted EPS at ₹3.21.

Operating cash flows improved sharply to ₹42.6 billion, up 25.7 per cent from the previous quarter, and stood at 135.4 per cent of net income, reflecting stronger working capital management.

Voluntary attrition for the trailing 12 months was 14.2 per cent, indicating stabilisation in workforce churn.

CT Bureau