Wipro, India’s third-largest IT services exporter, posted a sequential decline of 6.1 per cent in net profit for the June quarter but guided strongly for the second quarter, reflecting the growing buoyancy in the industry. The company posted a 11 per cent profit growth year-on-year riding on the back of an improved outsourcing demand.
Wipro met market estimates with a 0.2 per cent sequential growth in IT services revenue. At the end of the quarter, the IT major reported a revenue of $1,588 million as against $1,585 million in the previous quarter.
Commenting on the results, Wipro chairman Azim Premji said, “We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments in the US.”
In rupee terms, Wipro reported a net profit of Rs 1,623 crore for the first quarter which was a growth of 11 per cent on year on year basis. The revenue for the period stood at Rs 9,735 crore showing an annual growth of 5 per cent. The financials of Wipro reflect the demerged business where the company separated the IT and non-IT business with the latter becoming an unlisted entity.
On the first quarter numbers, Wipro CEO TK Kurien said, “We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter.”