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Wipro Q1 Results | Net profit tanks 21% YoY to Rs 2,564 crore, revenue grows 16%

In its outlook for the quarter ending September, the company said it expects revenue from the IT Services business to be in the range of $2,817 million to $2,872 million. This translates to a sequential growth of 3-5 percent.

July 20, 2022 / 04:19 PM IST
Wipro CEO Thierry Delaporte

Wipro CEO Thierry Delaporte

 
 
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Wipro Limited (Wipro) on July 20 reported a 20.93 percent year-on-year (YoY) decline in its consolidated profit after tax (PAT) at Rs 2,563.6 crore for the quarter ended June as compared to a PAT of Rs 3,242.6 crore recorded during the same period last year.

On a sequential basis, the profit fell 16.96 percent.

The consolidated total revenue for the Bengaluru-based IT services company rose 15.51 percent on year to Rs 22,001 crore as compared to the revenue of Rs 19,045 crore registered in the year-ago quarter. On a sequential basis, the revenue is higher by 2.98 percent.

In dollar terms, its revenue stood at $2.7 billion. IT Services segment revenue was at $2.735.5 million, an increase of 13.3 percent YoY. The company said IT services delivered revenue growth of 17.2 percent YoY in constant currency terms. IT services' operating margin for the quarter was at 15 percent, a decrease of 200 basis points quarter-on-quarter. It was down 380 basis points YoY.

Jatin Dalal, Chief Financial Officer at Wipro, said: "At 15 percent of operating margins, we believe that we have bottomed out."

In its outlook for the quarter ending September, the company said it expects revenue from its IT Services business to be in the range of $2,817 million to $2,872 million. This translates to a sequential growth of 3-5 percent.

“We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32 percent YoY in total contract value (TCV) terms, powered by large transformational deals, and our pipeline today is at an all-time high," said Thierry Delaporte, CEO and Managing Director, Wipro.

The company said all strategic market units and global business lines grew in double-digit YoY in constant currency during the April-June period. It closed 18 large deals resulting in a TCV of $1.1 billion in the quarter.

Wipro said its attrition rate - the rate at which employees leave the company - was at 23.3 percent during the quarter, marginally lower than 23.8 percent in the previous quarter and significantly higher than 15.5 percent in the same quarter last year. During the quarter under review, the net headcount addition was at 15,446 including more than 10,000 freshers.
Moneycontrol News
first published: Jul 20, 2022 03:48 pm