Results     20-Apr-24
Analysis
Wipro
Net profit up 5% QoQ to Rs 2834.6 crore in Q4FY2024
On consolidated basis

Quarter ended March 2024 compared with Quarter ended December 2023.

Net sales (including other operating income) of Wipro has increased 0.01% to Rs 22208.3 crore.  

Operating profit margin has jumped from 18.91% to 19.82%, leading to 4.81% rise in operating profit to Rs 4,400.80 crore.  Purchase of finished goods cost fell from 0.65% to 0.37%.   Employee cost increased from 60.28% to 61.40%.   Other expenses fell from 20.21% to 18.40%.   Selling and administration expenses fell from 3.75% to 3.29%.   Software technology development services cost fell from 11.58% to 10.96%.   

Other income rose 9.20% to Rs 652.9 crore.  PBIDT rose 5.36% to Rs 5053.7 crore.  Provision for interest rose 5.86% to Rs 330.8 crore.  Loan funds remained nil.  

PBDT rose 5.33% to Rs 4722.9 crore.  Provision for depreciation fell 9.78% to Rs 840.5 crore.  

Profit before tax grew 9.29% to Rs 3,882.40 crore.  Share of profit/loss was 4,950% lower at Rs -20.2 crore.  Provision for tax was expense of Rs 1004 crore, compared to Rs 851.5 crore.  Effective tax rate was 26.00% compared to 23.97%.

Minority interest increased 268.75% to Rs 23.60 crore.  Net profit attributable to owners of the company increased 5.21% to Rs 2,834.60 crore.  

Promoters’ stake was 72.90% as of 31 March 2024 ,compared to 72.90% as of 31 December 2023 .  

Quarter ended March 2024 compared with Quarter ended March 2023.

Net sales (including other operating income) of Wipro has declined 4.23% to Rs 22208.3 crore.  Sales of IT Services segment has gone down 4.73% to Rs 22,079.60 crore (accounting for 99.48% of total sales).  Sales of IT Products segment has gone up 2.48% to Rs 115.90 crore (accounting for 0.52% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 4.68% to Rs 4,134.90 crore.  PBIT of IT Services segment fell 5.14% to Rs 4,120.60 crore (accounting for 99.65% of total PBIT).  PBIT of IT Products reported profit of Rs 14.30 crore compared to loss of Rs 5.90 crore.  

PBIT margin of IT Services segment fell from 18.74% to 18.66%.  PBIT margin of IT Products segment rose from negative 5.22% to 12.34%.  Overall PBIT margin rose from 18.63% to 18.63%.  

Operating profit margin has jumped from 19.49% to 19.82%, leading to 2.62% decline in operating profit to Rs 4,400.80 crore.  Purchase of finished goods cost rose from 0.16% to 0.37%.   Employee cost increased from 59.76% to 61.40%.   Other expenses fell from 20.53% to 18.40%.   Selling and administration expenses fell from 4.13% to 3.29%.   Software technology development services cost fell from 12.19% to 10.96%.   

Other income rose 3.44% to Rs 652.9 crore.  PBIDT fell 1.88% to Rs 5053.7 crore.  Provision for interest rose 15.66% to Rs 330.8 crore.  Loan funds declined from Rs 17,466.60 crore as of 31 March 2023 to Rs 16,464.90 crore as of 31 March 2024.  Inventories declined from Rs 118.80 crore as of 31 March 2023 to Rs 90.70 crore as of 31 March 2024.  Sundry debtors were lower at Rs 11,547.70 crore as of 31 March 2024 compared to Rs 12,635.00 crore as of 31 March 2023.  Cash and bank balance rose to Rs 9,695.30 crore as of 31 March 2024 from Rs 9,188.00 crore as of 31 March 2023.  Investments rose to Rs 33,384.40 crore as of 31 March 2024 from Rs 33,073.20 crore as of 31 March 2023 .  

PBDT fell 2.91% to Rs 4722.9 crore.  Provision for depreciation fell 0.72% to Rs 840.5 crore.  Fixed assets declined from Rs 10,720.90 crore as of 31 March 2023 to Rs 9,931.70 crore as of 31 March 2024.  Intangible assets declined from Rs 34,653.00 crore to Rs 34,419.70 crore.  

Profit before tax down 3.37% to Rs 3,882.40 crore.  Provision for tax was expense of Rs 1004 crore, compared to Rs 924.9 crore.  Effective tax rate was 26.00% compared to 23.02%.

Minority interest increased 24.21% to Rs 23.60 crore.  Net profit attributable to owners of the company decreased 7.80% to Rs 2,834.60 crore.  

Equity capital decreased from Rs 1,097.60 crore as of 31 March 2023 to Rs 1,045.00 crore as of 31 March 2024 .  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 72.90% as of 31 March 2024 ,compared to 72.92% as of 31 March 2023 .  


Full year results analysis.

Net sales (including other operating income) of Wipro has declined 0.80% to Rs 89760.3 crore.  Sales of IT Services segment has gone down 1.05% to Rs 89,381.60 crore (accounting for 99.54% of total sales).  Sales of IT Products segment has gone down 31.75% to Rs 412.70 crore (accounting for 0.46% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 2.96% to Rs 16,412.90 crore.  PBIT of IT Services segment rose 3.08% to Rs 16,450.00 crore (accounting for 100.23% of total PBIT).  PBIT of IT Products segment fell 110.80% to Rs -37.10 crore (accounting for -0.23% of total PBIT).  

PBIT margin of IT Services segment rose from 17.67% to 18.40%.  PBIT margin of IT Products segment fell from negative 2.91% to negative 8.99%.  Overall PBIT margin rose from 17.53% to 18.28%.  

Operating profit margin has jumped from 18.62% to 18.69%, leading to 0.41% decline in operating profit to Rs 16,775.80 crore.  Purchase of finished goods cost fell from 0.72% to 0.43%.   Employee cost increased from 59.43% to 61.22%.   Other expenses fell from 21.24% to 19.66%.   Selling and administration expenses fell from 4.04% to 3.69%.   Software technology development services cost fell from 12.74% to 11.48%.   

Other income rose 15.66% to Rs 2630.8 crore.  PBIDT rose 1.50% to Rs 19406.6 crore.  Provision for interest rose 24.56% to Rs 1255.2 crore.  Loan funds declined from Rs 17,466.60 crore as of 31 March 2023 to Rs 16,464.90 crore as of 31 March 2024.  Inventories declined from Rs 118.80 crore as of 31 March 2023 to Rs 90.70 crore as of 31 March 2024.  Sundry debtors were lower at Rs 11,547.70 crore as of 31 March 2024 compared to Rs 12,635.00 crore as of 31 March 2023.  Cash and bank balance rose to Rs 9,695.30 crore as of 31 March 2024 from Rs 9,188.00 crore as of 31 March 2023.  Investments rose to Rs 33,384.40 crore as of 31 March 2024 from Rs 33,073.20 crore as of 31 March 2023 .  

PBDT rose 0.22% to Rs 18151.4 crore.  Provision for depreciation rose 2% to Rs 3407.1 crore.  Fixed assets declined from Rs 10,720.90 crore as of 31 March 2023 to Rs 9,931.70 crore as of 31 March 2024.  Intangible assets declined from Rs 34,653.00 crore to Rs 34,419.70 crore.  

Profit before tax down 0.18% to Rs 14,744.30 crore.  Share of profit/loss was 308.77% lower at Rs -23.3 crore.  Provision for tax was expense of Rs 3608.9 crore, compared to Rs 3399.2 crore.  Effective tax rate was 24.52% compared to 23.02%.

Minority interest increased 305.45% to Rs 66.90 crore.  Net profit attributable to owners of the company decreased 2.69% to Rs 11,045.20 crore.  

Equity capital decreased from Rs 1,097.60 crore as of 31 March 2023 to Rs 1,045.00 crore as of 31 March 2024 .  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 72.90% as of 31 March 2024 ,compared to 72.92% as of 31 March 2023 .  

Cash flow from operating activities increased to Rs 17,621.60 crore for year ended March 2024 from Rs 13,060.10 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 1,051.00 crore, compared to Rs 1,483.40 crore during the year ended March 2023.  

Outlook:

Guidance:  The company expects revenue from its  IT Services business segment to be in the range of US $ 2,617 million to US $2,670 million which translates to a sequential guidance of -1.5% to 0.5% in constant currency terms in Q1FY2025.

Margins are expected to be range bound around as last few quarters.

 

Management Commentary:

Srini Pallia, CEO and Managing Director, said “FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about the opportunities that lie ahead. We are on the brink of a major technological shift. Artificial intelligence is transforming our clients’ needs as they seek to harness its power for competitive advantage and enhanced business value. At Wipro, we have been gearing up for this moment. We have the capabilities, leadership, and the strength of over 230,000 Wiproites around the world to help us realize our goals. Although there’s a considerable amount of work ahead of us, I am confident that together, with our collective effort, we can pave the way for the next chapter of growth.”

Aparna Iyer, Chief Financial Officer, said “We expanded our margins by 40 basis points during the quarter resulting in EPS growth of 5.2% QoQ in Q4. Despite a challenging macro-environment our IT services margin expanded by 50 basis points for the full year FY24. We generated highest operating cash flow in recent years which is at 183% of our net- income in Q4 and 159% on a full year basis.”



Wipro : Consolidated Results
 Quarter endedYear ended
Particulars202403202303Var.(%)202403202303Var.(%)
Net Sales (including other operating income)22,208.3023,190.30-4.2389,760.3090,487.60-0.80
OPM (%)19.8219.4933 bps18.6918.627 bps
OP4,400.804,519.40-2.6216,775.8016,844.70-0.41
Other Inc.652.90631.203.442,630.802,274.6015.66
PBIDT5,053.705,150.60-1.8819,406.6019,119.301.50
Interest330.80286.0015.661,255.201,007.7024.56
PBDT4,722.904,864.60-2.9118,151.4018,111.600.22
Depreciation840.5846.6-0.723407.13340.22.00
PBT3,882.404,018.00-3.3714744.314771.4-0.18
Share of Profit/(Loss) from Associates-20.20.4PL-23.3-5.7-308.77
PBT before EO3862.24018.4-3.891472114765.7-0.30
EO Income00-00-
PBT after EO3862.24018.4-3.891472114765.7-0.30
Taxation1004924.98.553608.93399.26.17
PAT2858.23093.5-7.6111112.111366.5-2.24
Minority Interest (MI)23.61924.2166.916.5305.45
Net profit2834.63074.5-7.8011045.211350-2.69
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations2834.63074.5-7.8011045.211350-2.69
EPS (Rs)*5.425.88-7.8021.1421.72-2.69
* EPS is on current equity of Rs 1,045.05 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Wipro : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202403202303Var.(%)% of (Total)202403202303Var.(%)
Sales
Global IT Services & Products0.000.000.00-
India & Asia Pac IT Serv. & Product0.000.000.00-
Consumer Care & Lighting0.000.000.00-
Others0.000.000.00-
IT Services99.4822,079.6023,176.20-4.7399.5489,381.6090,330.10-1.05
IT Products0.52115.90113.102.480.46412.70604.70-31.75
IT Services & Products0.000.000.00-
India State Run Enterprise0.000.000.00-
Total Reported Sales100.0022,195.5023,289.30-4.70100.0089,794.3090,934.80-1.25
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.0022,195.5023,289.30-4.70100.0089,794.3090,934.80-1.25
PBIT
Global IT Services & Products0.000.000.00-
India & Asia Pac IT Serv. & Product0.000.000.00-
Consumer Care & Lighting0.000.000.00-
Others0.000.000.00-
IT Services99.654,120.604,343.90-5.14100.2316,450.0015,959.203.08
IT Products0.3514.30-5.90LP-0.23-37.10-17.60-110.80
IT Services & Products0.000.000.00-
India State Run Enterprise0.000.000.00-
Total PBIT100.004,134.904,338.00-4.68100.0016,412.9015,941.602.96
Less : Interest330.80286.0015.661,255.201,007.7024.56
Add: Other un-allcoable58.10-33.60LP-436.70-168.20-159.63
PBIT Margin(%)
Global IT Services & Products 0.000.000.00
India & Asia Pac IT Serv. & Product 0.000.000.00
Consumer Care & Lighting 0.000.000.00
Others 0.000.000.00
IT Services 18.6618.74-8.05 18.4017.6773.66
IT Products 12.34-5.221,755.48 -8.99-2.91-607.90
IT Services & Products 0.000.000.00
India State Run Enterprise 0.000.000.00
PBT100.003,862.204,018.40-3.89100.0014,721.0014,765.70-0.30
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