Wipro eyes 2-4% sequential revenue growth in Q1, closed 12 deals last qtr

Q4 IT services revenue was $2.15 bn, a rise of 3.9% sequentially

Technology services major Wipro on Thursday said it expects revenue growth of 2-4 per cent sequentially in the current quarter, after it reported a 3.9 per cent sequential rise in March-ended quarter.

The firm said it expects revenue from its IT Services business in the quarter ending June to be in to be in the range of $2.19 billion to $2.238 billion. This does not include revenue from its recently announced Capco and Ampion acquisitions.

In March, Wipro said it would buy London-based Capco, a global management and technology consultancy, for $1.45 billion. It also bought Ampion, an Australia-based provider of cybersecurity, DevOps and engineering services, for $117 million.

IT services revenue in the fourth quarter was $2.15 billion, a rise of 3 per cent sequentially on a constant currency basis.

IT Services operating margin for the fourth quarter was at 21 per cent, a fall of 70 basis points sequentially, but a rise of 344 bps annually.

Wipro said it closed 12 large deals resulting in a total contract value of $1.4 billion during the quarter.

“I am delighted with the way we have finished the financial year. We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates,” said Thierry Delaporte, CEO and Managing Director at Wipro.

Voluntary attrition in IT Services during the quarter was 12.1 per cent, while net utilisation was 86 per cent.

Wipro said it saw gross addition of over 18,000 employees, including onboarding of more than 2,850 freshers in the fourth quarter.

“We delivered a 340 bps expansion year-on-year in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. Led by disciplined execution, we generated strong operating cash flows at 136.7 per cent of our net income for the full year. We successfully completed the share buyback program returning $1.3 billion to our shareholders,” said Jatin Dalal, Chief Financial Officer.