Wipro’s large-deal bookings fell 58.6 per cent from the previous quarter to 674 million dollars. Current IT-services revenue was flat sequentially after currency effects were removed, while the operating margin improved. Contract bookings and recognized revenue describe different stages of business. For the next quarter, management’s guidance ranges from a 1.5 per cent revenue decline to 0.5 per cent growth at constant currencies.
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Wipro’s large contracts fall in value
Wipro, the information-technology services and consulting company, reported a sharp sequential decline in large-deal bookings for the quarter ended September 30. The company released its results on October 15. The quarter’s contract signings accompany current revenue and profit figures, giving separate measures of newly booked business and services already delivered during the reporting period.[1], [2]
Large-deal bookings fell 58.6 per cent to 674 million dollars at constant currencies. Wipro defines large deals as contracts with a total value of at least 30 million dollars. Overall bookings were 2.595 billion dollars, down 22.9 per cent sequentially on the same currency basis. Bookings include new business and renewals, with their contract value distinct from revenue recognized during the quarter.[1]
Services revenue stays flat after currency adjustment
Gross revenue reached 247.5 billion rupees, increasing 1.1 per cent from the previous quarter and 9.1 per cent from a year earlier. IT-services revenue was 2.6115 billion dollars. In dollar terms, that segment declined 0.1 per cent sequentially and grew 0.3 per cent annually. The company uses different currencies and business scopes for gross revenue and the services segment.[1]
At constant currencies, IT-services revenue was unchanged from the preceding quarter and 0.6 per cent higher than a year earlier. The services operating margin was 16.5 per cent, an improvement of 0.5 percentage point sequentially and a decline of 0.2 point annually. The margin describes the share of revenue left as operating earnings within that business, alongside its largely flat quarterly sales.[1]
Management gives a narrow next-quarter revenue range
Net income was 32 billion rupees, down 4.7 per cent sequentially and 1.9 per cent annually. Earnings per share reached 3.23 rupees, up 0.9 per cent from the previous quarter and 4.2 per cent from a year earlier. Operating cash flow was 53 billion rupees, equivalent to 165.8 per cent of net income. Trailing twelve-month voluntary employee attrition was 13.8 per cent.[1]
For the following quarter, Wipro forecast IT-services revenue between 2.571 billion dollars and 2.625 billion dollars. That guidance corresponds to a constant-currency change ranging from a 1.5 per cent decline to 0.5 per cent growth. Management’s range concerns a future reporting period. The lower bookings figure is a completed-quarter contract measure, while the revenue range remains an expectation for the coming quarter.[1]
