After TCS and HCL Tech, another IT major Wipro on Thursday, July 13, also reported a decline in voluntary attrition rate. Its attrition rate has “continued to moderate on a quarter-on-quarter basis, coming in at an 8-quarter low of 14 per cent in Q1’24”. The attrition rate is for IT services computed on a quarterly annualised basis and excludes DOP.
Wipro’s net profit jumped 12 per cent year-on-year to Rs 2,870 crore ($349.8 million) during the April-June 2023 quarter, according to a BSE filing. Its consolidated revenue rose 6 per cent year-on-year to Rs 22,831 crore.
The company’s total headcount stood at 2,49,758 as on June 30, 2023. Wipro’s voluntary attrition (IT services excluding DOP) on a trailing 12-month basis stood at 17.3 per cent in the June 2023 quarter.
The company’s attrition on a 12-month basis stood at 19.4 per cent in the previous quarter ended March 2023, 21.2 per cent in Q3 FY23, 22.9 per cent in Q2FY23, 23 per cent in Q1FY23, according to the latest data from Wipro.
Wipro said, “Voluntary attrition has continued to moderate QoQ, coming in at an 8-quarter low of 14 per cent in Q1’24”. It said voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP.
TCS, the country’s largest IT services company, on Wednesday also reported a decline in its attrition rate during the June 2023 quarter (Q1 FY24) to 17.8 per cent for the last 12 months.
Another IT major HCL Tech has reported a further decline in its attrition rate to 16.3 per cent from 19.5 per cent in the previous quarter ended March 2023. The company’s total headcount as of June 2023 was 2,23,438, down by 2,506 sequentially.
Thierry Delaporte, CEO and managing director of Wipro, said, “Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins.”
He added that despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum.
“We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the $1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses,” he said.
Jatin Dalal, chief financial officer of Wipro, said, “Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating Margin for the first quarter was 16 per cent an expansion of 112 basis points YoY. We generated strong
operating cash flows at 130 per cent of our net income for the Quarter. EPS for the quarter grew by 11.5 per cent YoY.”
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