Wipro ADRs fall nearly 12% on Q1 revenue drop even as PAT beats estimates

Wipro’s American Depository Receipts (ADRs) fell nearly 12% on Friday to hit the day’s low of $6.08 on the New York Stock Exchange after the company reported a 4% decline in its June quarter revenue at Rs 21,964 crore over Rs 22,831 crore reported in the year-ago period. It was also below Street’s estimates of Rs 22,258 crore.

The IT major reported a consolidated net profit of Rs 3,003 crore (attributable to the equity holders) for the quarter ended June 30, 2024, up by 4.6% over Rs 2,870 crore reported by the company in the year-ago period. Wipro’s PAT figure was above Street’s estimates of Rs 2,993 crore.

In its guidance for the quarter ending September 30, 2024, the company said it expects revenue from its IT services business segment to be in the range of $2,600 million to $2,652 million.

This translates to sequential guidance of (-)1.0% to +1.0% in constant currency terms. The company’s gross revenue saw a 1.1% quarter-on-quarter decline versus Rs 22,208 crore reported in Q4FY24.

The IT services segment revenue was reported at $2,625.9 million, a decrease of 1.2% QoQ and 5.5% YoY. The non-GAAP2 constant currency IT services segment revenue decreased 1.% QoQ and 4.9% YoY.Total bookings in the reported quarter stood at $3,284 million with large deal bookings standing at $1,154 million. It is a decrease of 3.1% QoQ and 3.6% YoY.The IT services operating margin for the quarter was at 16.5%, an uptick of 0.1% QoQ and 0.4% YoY. The net income for the quarter was at Rs 3,000 crore ($360.4 million), an increase of 5.9% QoQ and 4.6% YoY.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)