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Wipro Q1 results: PAT rises 9% QoQ to Rs 3,243 cr, beats estimates; sales rise 12%

MUMBAI: today reported a 9 per cent sequential rise in its consolidated net profit to Rs 3,242.6 crore for the quarter ended March, which was substantially higher than analysts’ expectations.

The Bengaluru-based company reported a 12.4 per cent on-quarter rise in consolidated revenues to Rs 18,252 crore in the reported quarter, comfortably beating Street’s estimates.

Wipro now expects its revenue from IT services business to be in the range of $2.53 billion to $2.58 billion, which translates to a sequential growth of 5.0 per cent to 7.0 per cent in the September quarter. The growth guidance is largely in-line with analysts’ estimates.

The company’s IT service revenues climbed 12.2 per cent sequentially to $2.4 billion, reflecting a strong demand environment for the company.

“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,” said chief executive officer and managing director Thierry Delaporte.

During the quarter, Wipro closed eight large deals that resulted in $715 million in new orders for the company. The IT services major added two more clients in the $100 million plus bracket and two each in the $50 million plus and $20 million plus categories.

On the operating front, the company’s margin performance suffered likely due to wage hikes undertaken to retain talent. The consolidated operating margin shrank 220 basis points sequentially to 18.8 per cent.

The attrition rate in the company jumped to 15.5 per cent from 12.1 per cent in the previous quarter.

Shares of Wipro ended 3 per cent higher at Rs 578.35 on the National Stock Exchange.

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