Wipro Q1 net profit up 35% as revenue rises 22.4%
16 July 2021
Wipro Ltd, India’s third-largest IT services firm, has reported a 35 per cent increase in its net profit at Rs3,230 crore for fiscal first quarer ended 30 June 2021, against Rs2,854 crore in Q1 FY21. Revenue for the quarter increased 22.4 per cent to Rs18,250 crore, compared to the same period in FY21.
In constant currency terms, revenues grew to $2.41 billion, a jump of 12 per cent sequentially.
Wipro said its IT services segment revenue was at $2,414.5 million, an increase of 12.2 per cent QoQ and 25.7 per cent YoY while IT services operating margin for the quarter was at 18.8 per cent, a decrease of 29 bps YoY.
Its IT services workforce crossed the milestone of 2,00,000, closing headcount at 209,890.
“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 per cent was well ahead of the top-end of our guidance range, both organically and with Capco,” said Thierry Delaporte, CEO and managing director, Wipro.
The company said that its organic sequential revenue growth was the highest in 38 quarters. Wipro also added over 12,000 employees to its payrolls.
The Capco acquisition, a British management and tech consultancy, for $1.45 billion in March 2021 is expected to contribute around 30 per cent to Wipro’s total revenues.
“Wipro signed an agreement to acquire Ampion on 1 April 2021, and we previously announced that it will be closed during Q1 FY22. However, certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2 FY22,” Wipro said in a regulatory filing.
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 the quarter ending 30 September 2021, a growth of 5 to 7 per cent.