Wipro revenue jumps 6.2% to $2.8 bn in Oct-Dec

India-based Wipro said its IT services revenue increased 6.2 percent to $2.8 billion during the October-December quarter of 2022 with IT services operating margin of 16.3 percent.
Wipro Oct-Dec 2022

The main industry verticals that contributed to the revenue growth of Wipro include Banking, Financial Services and Insurance (34.9 percent of total revenue), Consumer (18.9 percent), Health (12.0 percent), Energy, Natural Resources and Utilities (11.4 percent), Technology (11.3 percent), Manufacturing (6.9 percent) and Communications (4.6 percent) during the third quarter of fiscal 2023.

The number of employees at Wipro decreased to 258,744 during October-December quarter of 2022 from 259,179 July-September.

Wipro said its growth in IT services revenue for the full year will be in the range of 11.5 percent to 12.0 percent, in constant currency terms.

Wipro warned on Friday that revenue in its key IT services business could decline in the current quarter as clients delayed making spending decisions, a worry that the company’s peers have flagged as well.

Earlier this week, both Tata Consultancy Services (TCS) and HCLTech said European clients were tightening spending.

Bengaluru-based Wipro said its fourth-quarter IT services revenue, which accounts for about 98 percent of overall revenue, could range between a 0.6 percent sequential drop and a 1 percent sequential rise, in constant currency terms.

Wipro’s IT services revenue rose 0.6 percent sequentially, to $2.80 billion in constant currency terms, in the third quarter, and had jumped 3.1 percent sequentially in the fourth quarter last year.

“The company has started winning large orders … (but) there is certainly a little bit of a lag, a certain level of volatility in some sectors regarding discretionary spending and uncertainty,” Thierry Delaporte, chief executive and managing director of Wipro, said at a media conference.

“The ramp-up of projects is taking a little more time due to the size (and) uncertainty. There is a little bit of lag in winning a contract and converting that into revenue.”

Wipro’s total order bookings rose 26 percent year-over-year to $4.3 billion in the quarter ended Dec. 31.

Wipro’s net profit increased 2.8 percent to $375.27 million.