Wipro sees 3.5% fall in FY24 revenues
Posts flat net at Rs2,667.3-cr for Sept qtr as against Rs2,649.1 cr a yr ago
The business environment has been uncertain, inflation and interest rates stayed high. Clients are continuing to take a much more rigorous look at their investments, they are hyper-focused on efficiency, on optimisation of existing investment and faster return on new ones - Thierry Delaporte, CEO, Wipro
Lower Discretionary Spend
♦ Global clients reducing tech spend
♦ Conversion of order books becomes slower
♦ These factors impacted top-line growth
New Delhi: IT company Wipro on Wednesday reported almost flat growth in consolidated net profit at Rs2,667.3 crore for the September 2023 quarter and projected a 3.5 per cent fall in revenue in the current quarter on a weak global economic outlook.
The company had posted a profit after tax of Rs2,649.1 crore a year ago. Its lower IT services growth estimate for the December 2023 quarter by 3.5-1.5 per cent is in the range of $2,617-2,672 million in constant currency terms or about Rs21,642.59- 22,097.44 crore. The consolidated revenue from operations declined marginally to Rs22,515.9 crore during the reported quarter from Rs22,539.7 crore it registered in the September 2022 quarter.
“The business environment has been uncertain, inflation and interest rates have stayed high. Clients are continuing to take a much more rigorous look at their investments, they are hyper-focused on efficiency, on optimisation of existing investment and faster return on new ones,” said Wipro CEO Thierry Delaporte.
The lower discretionary spend is a reality today, the Wipro top honcho said, adding that conversion of order books has become slower. “Transformation programmes that are nearing their project terms are being replaced by new ones, but at a slower place, all of it has impacted top-line growth,” he said.
