IT major Wipro reported a 2.8 per cent year-on-year rise in net profit at ₹3,052.9 crore, in a seasonally weak third quarter. On a sequential basis, the profits rose 14.8 per cent from ₹2,659 crore last quarter. Revenue from operations stood at ₹23,229 crore, a 14.35 per cent y-o-y growth and 3.1 per cent q-o-q growth. While the profit beat market expectations, revenue fell in line.

“We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimisation,” Thierry Delaporte, MD & CEO.

Margins expand

“Our ability to deliver on client objectives, regardless of where they are in their cloud journeys, is positioning us favorably in a consolidating market. As we move ahead, we expect to continue to benefit from these trends and help clients build future-proof, resilient enterprises,” he added.

Wipro has retained its guidance for the full year. It said the revenue from the IT services business will be in the 11.5-12.0 per cent range in constant currency terms, translating to a growth rate of -0.6 to 1.0 per cent. Last quarter, the guidance was 0.5-2 per cent. Total bookings for the quarter stood at over $4.3 billion, led by large deal wins of over $1 billion. Margins, too, expanded by 120 basis points at 16.3 per cent.

“This expansion of margins was after absorbing the investments we made in our people, by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies,” said Jatin Dalal, Chief Financial Officer.

Attrition moderates

Attrition further moderated to 21.2 per cent from 23 per cent last quarter. The company’s total headcount was down by 435 employees to 258,744. Saurabh Govil, President and Chief Human Resources Officer, said the company will be hiring 3,000 freshers in the fourth quarter and 5,000 freshers in the quarter after that.

“Increasing customer reliability and a healthy business pipeline were expected to enhance Wipro’s recent growth. The company is a good fit for transformational deals. A majority of its customers are satisfied with the services it provides. Wipro has to pay attention to its attrition rate which could hinder its growth,” said Biswajit Maity, Principal Analyst at Gartner.

The company also declared an interim dividend of ₹1 per equity share, having a par value of ₹2 each to members. The payment of will be made on or before February 10, 2023.