Bengaluru headquartered Wipro Ltd — one of India’s largest consulting, IT services and BPM company — reported a revenue of $2.72 billion (₹20,860 crore) for the three-month period ending March 31, 2022, a sequential growth of 3.1 per cent.

For FY22, Wipro reported revenues of $10.4 billion (₹79,090 crore) which, on a year-on-year (YoY) basis, indicates growth of 27.3 per cent. In the IT services business, for the full year, the company reported operating margin of 17.7 per cent — a decrease of 254 basis points (100 basis points = 1 per cent) YoY — reflecting margin pressure.

Attrition jumps

While the company added 45,416 employees in the last 12 months, taking the total to 243,128 employees, attrition in the trailing 12 months jumped to 23.8 per cent indicating that one in four workers had left the company. The company said that it was addressing the industry-wide challenge of attrition by hiring more as well as through hiking compensation.

Wipro said it had added 428 new customers in the last one year, taking the total active number of customers to 1,369.

Thierry Delaporte, CEO and Managing Director of Wipro, said, “We have had an outstanding year, finishing with $10.4 billion in revenues, and an industry-leading growth of 27 per cent YoY. This is our sixth straight quarter of strong revenue growth at or over 3 per cent. We are excited with the addition of Rizing and the CAS Group to Wipro’s service offerings. With all markets, sectors and global business lines now growing in double-digits YoY, we have a strong foundation for next year’s growth.”

Jatin Dalal, Chief Financial Officer of the company, said, “Our efforts on client mining have resulted in an addition of eight customers in the more than $100 million bucket on YoY basis. We delivered operating margins of 17.7 per cent for the year, after significant investments on solutions, capabilities and talent. Net income for the year was highest-ever at $1.6 billion and delivered robust growth in EPS of 17 per cent YoY.

Margins below estimates

Wipro also predicted sequential growth between 1-3 per cent for the next quarter. It said, “We expect revenue from our IT services business to be in the range of $2,748 million to $2,803 million.”

However, analysts at Emkay Global Financial Services said that while revenues were in line, “margins were below estimates.” While the results were released after market hours, Wipro shares were down by 2.59 per cent to close at ₹509 per share. Emkay, in its report, said that the stock might react “negatively” when trading resumes on Monday.

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