Wipro delivers its 'best-ever' quarter in Q1, profit jumps 35%
Premium- Wipro Q1 results: The Bengaluru-based company expects revenues from its IT services business to be in the range of $2,535 million to $2,583 million in Q2
Underscoring strong demand for India's outsourcing service providers, IT services company Wipro today reported a 35% year-on-year jump in consolidated net profit to ₹3,230 crore for the quarter ended June 30, 2021. Revenue rose 22.4% to ₹18,250 crore. Wipro expects revenues from its IT services business to be in the range of $2,535 million to $2,583 million for quarter ending September 30, 2021, a growth of 5.0% to 7.0%.
Wipro's Q1 numbers were ahead of the Street's estimates. Analysts had expected Wipro to post a consolidated net profit of ₹2,854 crore.
In constant currency terms, revenues grew to $2.41 billion, a jump of 12% sequentially.
Commenting on the earnings, Wipro CEO Thierry Delaporte said: “Despite the severe onslaught of the pandemic, we delivered our best-ever quarter, with secular growth across all SMUs, Sectors and GBLs. Our sequential revenue growth of 12.2% was well ahead of the top-end of our guidance range, both organically and with Capco. Though in the early days yet, I am pleased with the way we have collaborated with Capco to build our joint go-to-market offerings and strategy."
In March, Wipro signed an agreement to acquire British management and technology consultancy Capco for $1.45 billion to strengthen its position in the banking, financial services, and insurance (BFSI) sector, which contributes about 30% to the company’s total revenues.
Wipro said June quarter organic sequential revenue growth was the highest in the last 38 quarters (in constant currency terms) while its net workforce increased by over 12,150.
Its IT services segment Revenue was at $2,414.5 million, an increase of 12.2% QoQ and 25.7% YoY while IT services operating margin for the quarter was at 18.8%, a decrease of 29 bps YoY.
Its IT services workforce crossed the milestone of 2,00,000, closing headcount at 209,890.
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Providing an update on its Ampion buyout deal, Wipro said expects the transaction to complete in the September quarter. "Certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2," the IT services company said.
Wipro's shares had surged nearly 3% to 52-week high of ₹579.75 today on BSE today ahead of the results.
Rival Infosys had on Wednesday raised its annual revenue forecast, as India's second-largest IT services company wins more contracts from global businesses expanding their digital offerings during the COVID-19 pandemic.
The outlook raise followed a strong first quarter in which the company's profit jumped 22.7%, mirroring upbeat results from bigger rival Tata Consultancy Services.
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