Wipro Q1 results: IT giant Wipro on Wednesday reported its June quarterly profit at Rs 2,563 crore, down 20.9 percent year-on-year. Wipro’s revenue for the quarter rose 17.9 percent year-on-year to Rs 21,528.6 crore. The operating margin in the IT services segment decreased by 200 basis points quarter on quarter to 15 percent.
The consolidated total revenue for the Bengaluru-based IT company increased by 15.51 percent year-on-year to Rs 22,001 crore, compared to the revenue of Rs 19,045 crore recorded in the same quarter of last year. On a sequential basis, sales are up 2.98 percent.
In dollar terms, sales were $2.7 billion. IT Services segment revenue was $2,735.5 million, up 13.3 percent year over year. IT Services’ operating margin for the quarter was 15 percent, down 200 basis points quarter-over-quarter. Jatin Dalal, chief financial officer at Wipro, said: “At 15 percent of operating margins, we think we’ve bottomed out.”
In the second quarter, the company expects revenue growth of 3 to 5 percent. “We expect revenue from our IT Services business to be between $2,817 million and $2,872 million,” it said in an investor presentation.
Wipro said all strategic market units and global business units grew double-digit YoY CC in the first quarter. The order book grew 32 percent in TCV terms and 18 percent year-over-year in ACV terms.
Wipro said churn during the quarter was 23.3 percent, slightly down from 23.8 percent in the prior quarter and significantly higher than 15.5 percent in the same quarter last year. During the quarter reviewed, net headcount growth was 15,446, including more than 10,000 freshmen.
Thierry Delaporte, CEO and General Manager said: “We have invested significantly in Wipro’s growth engine and are very pleased with the results. Our order bookings grew 32 percent year-over-year in terms of total contract value, enabled by major transformational deals, and our pipeline is at an all-time high today.
“We continue to strengthen the investments that will enable us to grow our business, remain agile in the marketplace and efficient as an organization, while continuing to focus on serving our customers even better,” said Delaporte.
On the stock exchanges, Wipro shares have fallen by more than 43 percent in calendar year 2022 so far. In comparison, Nifty50 and the S&P BSE Sensex are each down 8 percent. Shares of Wipro closed 1.49 percent higher at Rs 411.70 on the NSE today.
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