Wipro Q3 earnings: 6 key takeaways for Dalal Street

Consolidated revenue for the quarter increased 14.3% YoY to Rs 23,229 crore, and was tad higher than the estimated Rs 23,180 crore.

Sequentially, the topline rose a meagre 3%, but the bottomline increased by a sharp 15%.

Following are the other major takeaways from the earnings:

Outlook
For FY23, Wipro expects revenue growth from the IT services business to be in the range of 11.5-12.0%, in constant currency terms. This is much slower than the strong 27% growth it had reported for FY22.

Deal wins
Wipro won deals worth $4.3 billion in the quarter, up by 26% YoY, with large deal bookings rising by 69% YoY. The growth in large deal booking was much stronger than the 24% growth reported for the September quarter.

Margin
Operating margin calculated as earnings before interest and taxes (EBIT), improved by a sharp 120 basis points sequentially to 16.3%.The growth in margin was led by strong operational improvements and automation-led efficiencies, Chief Financial Officer Jatin Dalal said.

The expansion came even after absorbing the higher employee costs in the form of salary increases, promotions and long-term incentives for the senior leadership.

Attrition
For the fourth quarter in a row, Wipro saw attrition rate trending lower. The voluntary attrition moderated 180 bps from the previous quarter to 21.2% for the trailing 12 months (TTM). The attrition rate was as high as 23.8% in the March quarter of FY22.

Compared to

and , the attrition rate dropped slower for Wipro. HCL Technologies saw a 210 bps dip in the attrition rate in the third quarter, while for Infosys, it dropped by a whopping 270 bps. saw the lowest drop in attrition at 20 bps.

Dividend
Wipro announced the first interim dividend for the current financial year at Rs 1 a share.

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