India’s fourth largest IT services firm, Wipro, on Friday reported a fall in net profit and revenue from a year earlier in the fiscal fourth quarter, hurt by a contraction in clients’ technology spending in key growth verticals and regions.
The Bengaluru-based company posted a net profit of Rs 2,834.6 crore for the quarter through March, 7.8% lower than a year earlier. Revenue fell 4.2% to Rs 22,208 crore. On a sequential basis, profit increased 5.2%, while revenue was flat. In constant currency, revenue fell 6.6% year-on-year and 0.3% on-quarter to $2.66 billion.

Wipro has been underperforming its rivals in the IT sector on several counts for the past few years. This, combined with the exodus of senior management, likely triggered the surprise exit of chief executive Theirry Delaporte earlier this month, 15 months before his tenure was to end.

In his first public address, Wipro veteran and new chief executive Srinivas Pallia said FY24 was a challenging year for the industry, and that the macroeconomic environment “remains uncertain”.

“While I remain optimistic about the long term, it is important to be transparent. There is still a considerable amount of work ahead of us. My immediate priority is to accelerate growth,” said Pallia, who is also the new managing director.

The company spoke of some green shoots which are visible in its consulting business, Capco, which provides consulting services primarily to the banking and financial services sector.

Laying out his five focus areas as CEO, Pallia said his immediate priority is to accelerate growth and sustain mega deals. His other focus areas include accelerating large deal momentum, strengthening relationships with large clients and partners, and investing in accounts that have the potential to grow into large accounts. Pallia also wants to focus on industry-specific profits and business commissions led by consulting and infused artificial intelligence.

India’s fourth largest IT services firm, Wipro, on Friday reported a fall in net profit and revenue from a year earlier in the fiscal fourth quarter, hurt by a contraction in clients’ technology spending in key growth verticals and regions.
The Bengaluru-based company posted a net profit of Rs 2,834.6 crore for the quarter through March, 7.8% lower than a year earlier. Revenue fell 4.2% to Rs 22,208 crore. On a sequential basis, profit increased 5.2%, while revenue was flat. In constant currency, revenue fell 6.6% year-on-year and 0.3% on-quarter to $2.66 billion.

Wipro has been underperforming its rivals in the IT sector on several counts for the past few years. This, combined with the exodus of senior management, likely triggered the surprise exit of chief executive Theirry Delaporte earlier this month, 15 months before his tenure was to end.

In his first public address, Wipro veteran and new chief executive Srinivas Pallia said FY24 was a challenging year for the industry, and that the macroeconomic environment “remains uncertain”.

“While I remain optimistic about the long term, it is important to be transparent. There is still a considerable amount of work ahead of us. My immediate priority is to accelerate growth,” said Pallia, who is also the new managing director.

The company spoke of some green shoots which are visible in its consulting business, Capco, which provides consulting services primarily to the banking and financial services sector.

Laying out his five focus areas as CEO, Pallia said his immediate priority is to accelerate growth and sustain mega deals. His other focus areas include accelerating large deal momentum, strengthening relationships with large clients and partners, and investing in accounts that have the potential to grow into large accounts. Pallia also wants to focus on industry-specific profits and business commissions led by consulting and infused artificial intelligence.