BFSI business, which contributed 32 percent to total IT services, fell 1.4 percent sequentially to Rs 4,539.5 crore in June quarter
Wipro reported 3.86 percent sequential fall in Q1 consolidated profit and 2.4 percent decline in revenue from operations on July 17.
Profit for the quarter ended June 2019 stood at Rs 2,387.6 crore and revenue at Rs 14,786 crore, the company said in its BSE filing.
"We had a slower start to the year, we however remain focused on operations and continue to invest in talent and capabilities for the future," Jatin Dalal, Chief Financial Officer said.
The company's IT services business missed analyst expectations falling 1.6 percent sequentially to Rs 14,351.4 crore.
IT services revenue in dollar terms degrew by 1.76 percent sequentially to $2,038.8 million in Q1FY20, which was below a CNBC-TV18 poll estimates of $2,067.7 million, but adjusted dollar revenue degrowth was 1.3 percent and constant currency revenue 0.7 percent QoQ.
Wipro adjusted its Q1 numbers for the impact from the divestment of hosted data center services business and Workday & Cornerstone business.
On guidance front, the IT company expects IT services dollar revenue in the range of $2,039-2,080 million for July-September quarter, a growth of 0-2 percent over June quarter which was slightly below street estimates.
Abidali Z. Neemuchwala, CEO and Executive Director said efforts on client mining have resulted in an addition of three customers in more than $100 million bucket.
Wipro added 1 client in $75 million bucket.
The operating performance was subdued on higher wage cost and rupee appreciation, though was ahead of analyst estimates.
IT services' earnings before interest and tax (EBIT) fell 5.5 percent to Rs 2,652 crore and margin contracted 90bps to 18.4 percent compared to previous quarter.
Revenue for the quarter was expected at Rs 14,430 crore and EBIT at Rs 2,554.7 crore with margin at 17.7 percent, according to a CNBC-TV18 poll estimates.
BFSI business, which contributed 32 percent to total IT services, fell 1.4 percent sequentially to Rs 4,539.5 crore in June quarter.
Health business also registered a 2.16 percent sequential contraction and consumer business unit fell 5.5 percent while energy, natural resources & utilities segment reported a 1 percent fall in revenue and manufacturing 1.86 percent, Wipro said.
Neemuchwala told media persons that while the demand environment is stable in global markets, in pockets such as BFSI the decision making has been slower due to overall macro environment.
This has reflected in the revenue from Europe, which degrew both sequentially and year-on-year at 2 percent and 3.5 percent respectively for the quarter ended June 2019.
"We are hopeful that some of this delay and deferral is temporary and will improve as we progress through the year," he added.The stock closed 0.13 percent lower at Rs 259.70 on the BSE, ahead of quarterly earnings.
Assembly Election 2019 Results Updates:
Catch Maharashtra Election Result 2019 updates, news and views here
Catch Haryana Election Result 2019 updates, news and views here
Catch Bypoll Results 2019 updates, news and views here
For full coverage, click here.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .