Technology services provider Wipro Ltd. is now expecting revenue for the March quarter to be between a drop of 1.5 percent to a growth of 0.5 percent on a constant currency basis.
Revenue in US Dollar terms fell by 2.1% on a sequential basis to $2,656.1. The figure is lower than the CNBC-TV18 estimate of $2,839 million.
Wipro’s revenue in rupee terms stood at ₹22,151 crore compared to ₹22,395.8 crore in the September quarter. The figure was marginally higher than the CNBC-TV18 poll of ₹21,989 crore.
EBIT or Earnings before Interest and Tax stood at ₹3,542.6 crore, which was also higher than the CNBC-TV18 poll expectation of ₹3,331.5 crore and flat compared to ₹3,606 crore during the September quarter.
On a sequential basis, Wipro’s revenue is down 1.1%, while EBIT is down 1.8 percent.
EBIT margin for the quarter stood at 16%, higher than estimates of 15.2 percent and 10 basis points lower than the 16.1% reported in the September quarter. The company’s margin was estimated to be hit considering the wage hike that took effect on December 1.
CFO Aparna Iyer said the margin was resilient despite revenue headwinds and absorbing the impact of investments made for growth.
Wipro won deals worth $3.8 billion during the December quarter, which included 14 large wins. The total deal wins grew by 0.2 percent on a sequential basis. MD & CEO Thierry Delaporte said large deals grew by 20% on a year-to-date basis.
The CEO also said the company was starting to see early signs of a return to growth in consulting, as their Capco business grew in double-digits.
“We are deploying AI internally across all businesses and functional areas as well, with the goals of efficiency, productivity and scale. We are confident that these investments will allow us to capitalise on emerging opportunities, as the macro environment improves,” Delaporte said.
Wipro also saw a net reduction of over 4,400 employees during the December quarter. The company’s attrition rate fell to a 10-quarter low, coming in at 14.2 percent.
Additionally, Wipro announced a dividend of ₹1 per share, the record date for which has been fixed as January 24, 2024.
Wipro’s shares ended 4 percent higher ahead of the results at ₹466.10. In reaction to the results, the company’s shares listed in the US are trading 5 percent higher in pre-market trading.