Wipro released its Q1 results for the quarter ending on June 30. The company has shown overall progress but the numbers did not reach the market estimates.
Wipro shared its quarter 1(Q1) results for the Financial Year 2024 (FY23). These results were reported under the International Financial Reporting Standards (IFRS). The net profit of the company has seen a decline on a year-on-year (YoY) basis. The company’s gross revenue has increased but the net income and eventually the net profit have not been able to reach the market expectations. They have shown progress in IT, they have been able to make new deals with other companies and have also seen expanding their operations.Â
Here are the key highlights of the Q1 results for Wipro.Â
Net ProfitÂ
The company reported the consolidated Profit After Tax (PAT) at ₹2,563.6 crores. This shows a decline of 20.9 percent from last year’s same quarter. In Q1 for FY23, this profit was recorded at ₹3,242.6 crores. In the previous quarter, Q4 for FY22 the company had made a profit of ₹3,087 crores which compared to the current quarter shows a decline of 16.96 percent. These results have left the investors and stakeholders a little disappointed. The numbers are not even close to the estimations made in the market. According to the estimations made in the market, the net profit would tank 3.8 percent on a quarter-on-quarter (QoQ) basis and declined by 8.1 percent YoY. Which shows an estimated profit of ₹2,970 crores.Â
Revenue Generated
The company has earned greater revenues comparatively. The gross revenue is recorded at $2.7 billion which is 2,15,300 thousand crores. This has shown an increase of 17.9 percent growth YoY basis. The majority of the revenue generated was from their IT sector. The income for the IT department has shown a YoY growth of 13.3 percent. The total amount is reported at $2,735.5 million. The net income of the company is $324.4 million in rupees amounts to ₹25.6 billion. The earnings per share for the company for this quarter are estimated at ₹4.69. For the quarter ending on 30 September 2022, the revenue is expected to rise by 3 to 5 percent from the IT service business.Â
Others
The balance sheet of the company was tallied at ₹11,02,880. The total current assets amounted to ₹5,85,073 and the current liabilities were ₹3,00,486. From the operating activities, the company generated an income of ₹31,890; these activities included selling and distribution, general, administrative expenses, profit or loss in foreign exchange, and other sources. The figures mentioned are rupees in millions.During this quarter the company hired over 10,000 freshers and has an attrition rate of 23.3 percent. The company’s total headcount is recorded at 2,58,574. The company is planning to employ 30,000 freshers by the end of FY23. For their IT services, the company has made tie-ups with various companies in different sectors like healthcare, manufacturing, and finance. They are expanding their operations and also providing specialized digital services.Â
The company though has shown considerable progress has failed to reach the heights expected in the market. For the first quarter, the company is doing well considering the economic situation. It is expected to rise with its new operations and revised strategies. Officials of the company have stated that there will be steady growth and the company’s current performance is not bad. Surely, the IT sector has progressed amidst the pandemic but there is a long way to go for the company as well as the stakeholders. Wipro is set for the second quarter of the year, with rising expectations of the investors and other stakeholders with the company.Â
