Wipro’s stock price rose 121% during Thierry Delaporte’s tenure, revenue up 47% in last 14 quarters

Delaporte resigned from his position earlier today and Srinivas Pallia will succeed him as the new CEO, announced Wipro in a regulatory filing to the stock exchanges. The outgoing CEO will be relieved from his duties from May 31, 2024. Pillai will take over from April 7, 2024 for a period of five years.

Also Read: Wipro MD Thierry Delaporte resigns, Srinivas Pallia to succeed as CEO

Coming to Wipro’s financials, the tech major’s revenue increased 47 per cent from July 1, 2020 till the third quarter of fiscal 2023-24 (Q3FY24), while net profit also rose 5.5 per cent during Delaporte’s tenure as Wipro CEO.

Wipro’s financials during Delaporte’s tenure 

The software services major reported a revenue of ₹15,125.6 crore in the second quarter of fiscal 2020-21 (Q2FY21) when Delaporte took over as Wipro boss. This compared to the latest revenue reported in the third quarter of fiscal 2023-24 (Q3FY24) which came in at ₹22,205 crore. Hence, the total rise in revenue reported in the last 14 quarters is nearly 47 per cent.

Similarly, Wipro reported a net profit of ₹2,552 crore in the second quarter of fiscal 2020-21 (Q2FY21). This compared to the latest revenue reported in Q3FY24  which came in at ₹2,694 crore. Hence, the total rise in net profit (in percentage terms) during the successive quarters when Delaporte remained Wipro CEO is 5.5 cent, according to stock exchange data.

Also Read: Thierry Delaporte steps down as Wipro CEO and MD, all you need to know about the highest paid CEO in India in FY23

However, under Delaporte, Wipro’s profitability has fallen the most. The IT company also reported an operating margin of 16 per cent for the quarter ended December 2023, which is 10 basis points (bps) lower than the September 2023 quarter. When Thierry took over in July 2020, Wipro reported an operating margin of 19 per cent. 

Wipro is expected to be the only information technology (IT) company out of the top four Indian IT firms to end financial year 2023-24 (FY24) with a decline in total revenue. During the Q3FY24 results commentary, Wipro projected its revenue to change by -1.5 per cent to 0.5 per cent, indicating that it could end FY24 with a revenue decline of 3.7 per cent to 4.1 per cent from FY23.

Wipro saw more than 750 top executives ranked general manager (GM) and above, leave the company during Delaporte’s tenure over his push to usher in new talent for orchestrating change within the company. Out of this, at least 22 senior executives ranked senior vice-president and above quit Wipro since Thierry had taken over as CEO. Delaporte’s departure follows that of former Capco CEO Lance Levy, who served in the position for nearly a decade.

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Published: 06 Apr 2024, 09:42 PM IST