Wipro Manages To Surpass Q1 Revenue Expectations, Driven By IT Services Growth

Wipro Limited WIT reported first-quarter FY24 gross revenue of $2.782 billion, an increase of 6% Y/Y, marginally beating the consensus of $2.78 billion.

IT Services revenue grew 0.8% Y/Y to $2.78 billion. Non-GAAP constant currency IT Services segment revenue grew 1.1% Y/Y.

IT Services' operating margin for the quarter was 16%, up 112 bps Y/Y.

Net income was $349.8 million, up by 12% Y/Y. Operating Cash Flow was at $457.1 million.

EPS of $0.06 missed the consensus of $0.07.

Wipro held $1.02 billion in cash and equivalents as of June 30.

Q2 Outlook: Wipro sees IT Services business revenue of $2.722 billion - $2.805 billion, (-2.0)% - (+1.0)% Q/Q in constant currency terms.

"Wipro's first-quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins," said Thierry Delaporte, CEO and Managing Director. "Despite a gradual reduction in clients' discretionary spending, we maintained new business momentum. We earned our clients' trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses and help capture market share."

Price Action: WIT shares traded higher by 1.27% at $4.80 premarket on the last check Thursday.