Wipro Q1 Results FY22- 2023

The fourth largest IT company in India, Wipro announced its quarterly results for the first quarter of April-June quarter on 20th July 2022. The Bangalore-headquartered company showed a 21.22% year-on-year decline in its profit after tax (PAT), undercutting street estimates by quite some margin. Profit was recorded at Rs 2563 crore in Q1 FY23 as against Rs. 3248.0 crores in the same quarter of the previous year. This could be partially attributed to the rise in the tax expense of the company in this quarter, as well as an increase in employee benefit expenses, finance costs, and technical fees. 

There was also an increase in the travel costs and facility expenses compared to the previous year, which the company states was expected as we head back to relatively normal circumstances post the Covid-19 era. Wipro has ended its work-from-home facility and is calling employees back to the workspace, however, is exploring a hybrid model currently. Total expenses for the company came in at Rs. 18,647.5 crores in Q1 FY23, as compared to Rs. 15,172.7 crores in Q1 FY22.

It’s not all gloom and doom. The IT major reported a 17.95% YoY (year on year) increase in its revenue from operations to Rs. 21,528.6 crores in Q1 FY23 from Rs. 18,252.4 crores in Q1 FY22. The operating profit for Wipro in the first quarter of the year came in at Rs. 3190 crores. 

For the quarter ended 30 June, 2022, Wipro’s IT services segment that has been the mainstay of the company saw its revenue come in at $2,735.5 million, an increase of 13.3% YoY. However, the segment’s operating margin was reported at 15%, a decrease of 200 bps quarter on quarter. 

According to management, the IT giant has secured significant new orders in the quarter, which grew 32% YoY on total contract value terms.

Despite an attrition volume of 23.3% in the trailing twelve months (TTM), the company reported a net headcount addition at 15,446 employees in Q1 FY23. Of this, the company has onboarded more than 10,000 freshers in Q1 FY23. Wipro reached a total headcount of 2,58,574 employees. 

The basic earning per equity share in the quarter was Rs. 4.69. Ahead of the results, the Wipro stock closed in the green at Rs. 411.70 per share, a 1.49% increase from the previous day’s closing.

Hits of Wipro Q1 Results 2023

• Revenue from operations increased 17.95% YoY to Rs. 21,528.6 crores in Q1 FY23 from Rs 18,252.4 crore in Q1 FY22. 
• The operating profit was Rs. 3190 crores.
• The IT services segment reported its revenue at $2,735.5 million, an increase of 13.3% YoY.
• The revenue from existing customers increased to 98.7% in Q1 FY23 from 97.2% in Q1 FY22.
• The net headcount addition to the company was 15,446 employees in Q1 FY23.