Wipro ADR declines PAT in Q4, rises 4% despite relaxed guidance

Wipro’s American Depositary Receipts (ADRs) surged more than 4% on Friday to hit a one-day high of $5.37 on the New York Stock Exchange despite the company’s consolidated net profit for the quarter ended March 2024 falling 8% year-on-year to Rs 2,835 crore. It was Rs 3,074 crore in the corresponding quarter of the last fiscal.

Earlier on Friday, Wipro shares closed at Rs 452.10 on the NSE, up Rs 7.75 or 1.74 per cent. Quarterly earnings were released after hours and the company missed revenue estimates and gave softer guidance.

The profit figure was slightly lower than the ET Now Poll estimate of Rs 2,880 crore.

Operating revenue during the reporting period also declined 4% YoY to Rs 22.28 billion compared to Rs 23.19 billion in the same period last year.

Topline was estimated at Rs 22,100 crore in an ET Now poll.

IT Services segment revenue for the quarter was $2,657.4 million, flat quarter-over-quarter (QoQ) and down 6.4% year-over-year. Meanwhile, fixed currency IT services revenue declined 0.3% QoQ and 6.6% YoY. Wipro booked $3.6 billion worth of deals, with large deals valued at $1.2 billion, up 31% QoQ and 9.5% YoY.

“FY2024 has been a challenging year for our industry and the macroeconomic environment remains uncertain. However, we are optimistic that there are opportunities ahead,” said Srini Pallia, CEO and MD, Wipro.

The operating profit margin in the fourth quarter was 16.4%, an increase of 40bps compared to the previous quarter.

With a major technological shift imminent where artificial intelligence will transform customer needs, Wipro said it is preparing for this moment.

(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)