Wipro Q1 net profit jumps 35%

Wipro Ltd. posted a 35.2% rise in consolidated net profit to ₹3,230 crore for the quarter ended June 30, and said it was well-placed for double-digit growth in the year. Revenue rose 22.4% to ₹18,250 crore.

It forecast revenue growth of 5-7% for the quarter ending September 30, with expected revenue in the $2.535 billion-$2.583 billion range.

“Even at the lower end of our guidance, we will cross the $10-billion annual run rate of revenues,” said CEO & MD Thierry Delaporte. “The Q1 performance and Q2 guidance set us up for a well ahead of double-digit growth for the full year, even excluding Capco.” he added.

Demand was robust and the quality of the company’s overall pipeline was better than before, he said.

“Our top 3 markets grew in double digits. All markets were witnessing solid demand and deal wins were exceptionally strong in the Americas,” he said in his commentary. Wipro, however, witnessed a drop in operating margin to 18.8% in Q1, compared with 21% in the quarter ended March.

“While 1.3% was due to Capco acquisition, the remaining 90-basis point impact was due to our significant investment in talent,” explained Jatin Dalal, chief financial officer.

In the IT services segment, which accounts for more than 95% of Wipro’s gross revenues, the company reported 21.3% growth in revenue in constant currency to $2.41 billion from a year earlier. Sequentially, IT services revenue growth was at 12% in constant currency terms.

Headcount rises 12,178

In Q1, the IT firm added a net of 12,178 employees to take total headcount to 209,890.

Saurabh Govil, chief human resources officer, Wipro said, “We are seeing an unprecedented intake of freshers. We will send out offer letters to 30,000 freshers this year who would join the company next year.”

The company intends to onboard more than 6,000 freshers in the second quarter. Wipro’s attrition jumped to 15.5% in Q1 from 12.1% in the immediately preceding three-month period.

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Printable version | Sep 23, 2021 9:12:17 PM |

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