Daily News
View All NewsWipro Q4 revenue falls 4.2% amid challenging environment
India-based IT services giant Wipro Ltd. (NYSE: WIT) today reported revenue fell by 4.2% year over year in its fiscal fourth quarter ended 31 March 2024. Revenue totalled INR 222.1 billion (USD 2.67 billion) during the period.
| (INR millions) | Q4 2024 | Q4 2023 | Change | Q4 2024 (USD millions) |
| Revenue | 222,083 | 231,903 | -4.2% | 2,660.4 |
| Gross profit | 64,864 | 69,165 | -6.2% | 777.0 |
| Profit before tax | 38,622 | 40,184 | -3.8% | 462.6 |
| Profit for the period | 28,582 | 30,935 | -7.6% | 342.4 |
According to Reuters, Wipro’s Q4 revenue beat analysts' expectation of INR 221.51 billion (USD 2.65 billion).
IT services segment revenue was at USD 2,657.4 million, an increase of 0.1% over the quarter and a decrease of 6.4% year-on-year in Q4. In constant currency IT Services segment revenue decreased 0.3% quarter-on-quarter, and 6.6% year-on-year.
By business unit, Q4 revenue in Americas 1 within the IT services segment was flat over the year on both a reported basis and on a constant currency basis. In Americas 2, revenue fell by 5.7% on a reported basis and by 6.0% on a constant currency basis.
In Europe, revenue decreased by 11.3% over the year and by 12.4% on a constant currency basis. In the APMEA segment, revenue fell by 11.5% on a reported basis and by 9.4% on a constant currency basis.
India's IT services industry has been grappling with clients tightening their purse strings due to stubbornly high inflation and geopolitical risks, Reuters reported. Industry body Nasscom estimated overall revenue growth more than halved to 3.8% last financial year.
Wipro revenue for the full year reached INR 897.6 billion (USD 10.75 billion), a decrease of 0.8% year-on-year.
Looking ahead to the quarter ending 30 June 2024, the company expects revenue from its IT Services business segment to be in the range of USD 2.61 billion to USD 2.67 billion. This translates to sequential guidance of -1.5% to +0.5% in constant currency terms.
Srini Pallia, CEO and Managing Director, said “FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about the opportunities that lie ahead. We are on the brink of a major technological shift. Artificial intelligence is transforming our clients’ needs as they seek to harness its power for competitive advantage and enhanced business value.”
Wipro shares closed today at INR 452.75 (USD 5.42), up 1.89% on the day and 17.06% below its 52-week high of INR 545.90 (USD 6.54), set on 19 February 2024. The company has a market cap of INR 2.32 trillion (USD 27.79 billion).