Wipro, a leading Indian IT services company, released its Q4 FY24 results on April 19, 2024. If you invest in stocks, make sure you are updated on what this stock has to offer. The report painted a mixed picture, with a decline in profits and revenue alongside a leadership shift. Let's delve deeper into the Wipro Q4 results 2024 in this blog and look at the key takeaways.
Profit decline
- Wipro's consolidated net profit for Q4 FY24 fell 8% YoY to Rs 2,835 crore, falling short of analyst expectations of Rs 2,880 crore.
- This marks a reversal from the consistent growth trajectory Wipro has witnessed in recent quarters.
Revenue decline
- Revenue from operations also dipped by 4% YoY to Rs 22,208 crore compared to Rs 23,190 crore in the same period last year.
- This decline underscores the competitive nature of the IT services industry.
Leadership change
- The results announcement comes amidst a significant leadership shift with CEO Thierry Delaporte's recent resignation.
- The company has appointed Srinivas Pallia, previously CEO of Americas 1 business unit, as the new CEO.
- Investor attention will be focused on Pallia's strategy and vision for navigating future growth.
Attrition and headcount
- Wipro's voluntary attrition rate climbed to 14.2% on a trailing 12-month basis, exceeding the 12.3% reported in the previous quarter.
- This trend aligns with the broader industry challenge of retaining talent in a dynamic job market.
- The company's headcount also witnessed a 9.5% year-on-year decline, falling to 2,34,054 employees.
- The reasons behind this reduction remain to be seen in the detailed results commentary.
Dividend announcement
- Wipro's board declared an interim dividend of Rs 1 per share, previously announced in January 2024, to be considered the final dividend for FY23-24.
Looking ahead
Wipro's Q4 results raise questions about the company's future performance. The profit and revenue decline, coupled with leadership changes and high attrition rates, paint a picture of potential challenges. Investors will be keenly awaiting more details from the company's results commentary to understand the reasons behind these trends and Pallia's plans for addressing them. Wipro's ability to navigate these headwinds and capitalise on growth opportunities will be crucial in the coming quarters for the company as well as for individuals who hold Wipro as part of their stock investment strategy.
