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Highlights

  • In FY24, Wipro experienced a 4% decline in total revenue compared to FY23, and net profit declined by approximately 5.6%
  • The company’s large deal bookings reached USD 4.6 billion in Q4 FY24, reflecting a 17.4% year-over-year growth
  • Wipro has been selected by HanesBrands Inc. to accelerate digital transformation initiatives and foster business growth

Wipro Limited (NYSE: WIT) is a multinational corporation that offers technology and consultancy services. Specifically, the company’s services comprise artificial intelligence, cloud, business process, cyber security, data analytics, engineering, etc. It has a market capitalization of USD 30.67 billion.

In FY24, Wipro experienced a decline of approximately 4% in total revenue compared to FY23. This decline, coupled with higher total operating expenses, led to a decline of around 5.6% in net profit. However, the company’s operating cash flows surged by around 31% due to the favorable impact of the change in net working capital, although partially offset by decreased net income.

On a positive note, the company’s large deal bookings reached a total contract value of USD 4.6 billion in the fourth quarter of FY24, marking a 17.4% growth from the previous year. Similarly, free cash flow surged to USD 2002.1 million in FY24, compared to USD 1441.6 million in FY23.

Over the five years from 2020 to 2024, the company's revenue exhibited fluctuating trends, starting at 8,609 million USD in 2020, peaking at 11,268 million USD in 2023, and slightly decreasing to 10,845 million USD in 2024. Gross profit followed a similar trajectory, beginning at 2,457 million USD in 2020, rising to 3,231 million USD in 2023, and stabilizing at 3,215 million USD by 2024.

Despite these fluctuations, gross margin showed less variability, ranging from 28.54% in 2020 to a peak of 31.68% in 2021, and concluding at 29.64% by the end of 2024.

Recent business update

Recently, Wipro announced its selection by HanesBrands Inc. to accelerate its digital transformation initiatives and foster business growth. Additionally, the company announced a partnership with Hewlett Packard Enterprise (HPE) to introduce a GenAI solution at its new customer experience center in Kodathi.

Top 10 shareholders

The top 10 shareholders of Wipro collectively hold approximately 83.02% of the total shares, indicating significant concentration of ownership. Leading this group are Premji (Azim Hasham) and the Azim Premji Trust, holding the largest stakes in the company at approximately 62.13% and 10.18%, respectively.

Stock performance

WIT's stock has shown modest returns of around 2.82% over the last three months and a surge of around 17.54% over the past nine months. Currently, it is trading closer to the upper end of its 52-week high of USD 6.45 and low of USD 4.48.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 24, 2024. The reference data in this report has been partly sourced from EODHD/Others.