Wipro Q1 results: Net profit falls 21% to Rs 2,563 cr as overall expenses rise

IT services company Wipro Limited on Wednesday reported 20.6 per cent year-on-year decline in consolidated net profit at Rs 2,563.6 crore for the quarter ended 30 June, 2022 as higher employee-related costs pushed up firm's overall expenses. The company had reported a net profit of Rs 3,232 crore in the year-ago period.  

Sequentially, the net profit decreased 16.9 per cent from Rs 3,087 crore in the previous quarter (Q4FY22).

Wipro's revenues rose 19 per cent to Rs 21,529 crore in the quarter under review as compared to Rs 18,252.4 crore in the same quarter last fiscal.  Meanwhile, IT services segment revenue was at $1.9 billion, an increase of 13.3 per cent YoY.

The company also added that it delivered constant currency (CC) growth in revenues at 17.2 per cent in YoY CC.

Wipro highlighted that its IT services operating margin for the quarter was at 15 per cent, a decrease of 200 bps Quarter-on-Quarter (QoQ).

Moreover, it expects revenue from our IT services business to be in the range of $2,817 million to $2,872 million for the quarter ending September 30, 2022. This translates to a sequential growth of 3.0 per cent to 5.0 per cent, it added. 

In terms of headcount, Wipro's closing strength of employees was at 258,574, an increase of 15,446 (QoQ). Wipro stated that its attrition level for the quarter fell slightly to 23.3 per cent QoQ.

Commenting on the results,  Thierry Delaporte, CEO and Managing Director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better.”

Jatin Dalal, Chief Financial Officer said, “We are consistently investing in solutions and capabilities for our growth to further strengthen our position of being a strategic partner for our clients. At 15% of operating margins, we believe that we have bottomed out.”

Shares of Wipro on Wednesday closed 1.63 per cent higher at Rs 412.20 apiece on BSE.