Wipro Beats Revenue Expectations In Q4, Anticipates Steady Growth Driven By Tech Demand

Technology services and consulting company Wipro Ltd WIT shares are trading higher after the company reported fourth-quarter results.

The company reported gross revenue of INR222.1 billion ($2.67 billion), flat Q/Q, beating the consensus of $2.65 billion. 

EPS of 7 cents was in line with the consensus.

IT Services revenue declined by 6.4% Y/Y to $2.66 billion. Adjusted constant currency IT Services segment revenue decreased by 6.6% Y/Y.

IT Services' operating margin for the quarter was 16.4%, versus 17% a year ago. 

Net income was INR28.3 billion ($341 million), down from INR30.7 million a year ago. Operating cash flow was at INR52.2 billion ($626.1 million).

Total bookings stood at $3.6 billion, with large deal bookings worth $1.2 billion, up by 9.5% Y/Y.

The board confirmed the interim dividend of INR1, which it will consider the final dividend for the financial year 2023-2024.

Q1 Outlook: Wipro expects IT Services business revenue of $2.617 billion – $2.670 billion, (-1.5)% to (+0.5)% Q/Q in constant currency terms. Total revenue consensus was $2.690 billion.

Wipro stock gained over 19% in the last 12 months. Investors can gain exposure to the stock via VanEck ETF Trust VanEck Digital India ETF DGIN and ALPS Emerging Sector Dividend Dogs ETF EDOG.

Price Action: WIT shares were up 3.5% to $5.34 at last check Friday.

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Image generated using artificial intelligence via Midjourney.