Wipro delivers 'best-ever' quarterly performance; Q1 profit up 35% to Rs 3,230 cr

IT major Wipro reported a 35 per cent year-on-year jump in its consolidated net profit at Rs 3,230 crore. The company's revenue grew 22.4 per cent YoY to Rs 18,250 crore. This is Wipro's "best-ever" quarterly performance in the first quarter of a financial year.

Thierry Delaporte, CEO and Managing Director said, "Despite the severe onslaught of the pandemic, we delivered our best-ever quarter, with secular growth across all SMUs, Sectors and GBLs."

IT services segment revenue of the company stood $2,414.5 million in Q1, an increase of 12.2 per cent QoQ and 25.7 per cent YoY. The operating margin for the quarter stood at 18.8 per cent, a decrease of 29 bps YoY. In a statement to the stock exchanges, Wipro said its earnings per share for the first quarter stood Rs 5.92 ($0.081), an increase of 41 per cent YoY.

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In its outlook for the financial year, Wipro said it expects revenue from the IT services business to be in the range of $2,535 million to $2,583 million. It translates to a sequential growth of 5 per cent to 7 per cent.

In the previous Jan-March quarter, Wipro had reported a 27.7 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 2,972.3 crore. Sequentially, the profit declined 0.8 per cent from Rs 2,997.8 crore in the December quarter.

Delaporte said the company's sequential revenue growth of 12.2 per cent was well ahead of the top-end of its 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. We remain focused on deepening our customer relationships, investing in talent and capabilities for the future, and winning market share."

The company's IT services workforce crossed the milestone of 200,000 as of June 30, closing headcount at 209,890. Jatin Dalal, Wipro CFO, said the company has successfully issued its debut bond offering in the international markets for $750 million.

Wipro had signed an agreement to acquire Ampion on April 1, 2021, and it had previously announced that it would be closed during Q1'22. "Certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2'22," the company said.

Ahead of its Q1 financial results announcement, Wipro share rose Rs 16.65 or 2.96 per cent up to Rs 578.35 from its previous session close of Rs 561.70 on the National Stock Exchange.

Also read: Wipro scales Rs 3 lakh crore market cap mark for first time