Q1 report card: Upbeat Wipro sees strong Q2 growth

By: |
July 16, 2021 4:30 AM

Revenues at Rs 18,252 crore were up 12.4% sequentially as well as ahead of the estimate of Rs 17,630.41 crore. The company’s Ebit stood at Rs 3,473 crore, up 1.6% compared to the preceding quarter and also ahead of the estimate of Rs 3,263.94 crore.

Wipro now expects revenue from its IT services business to be in the range of $2,535 million to $2,583 million. This translates to a sequential growth of 5-7% in the September quarter, which is largely in line with analysts’ estimates.Wipro now expects revenue from its IT services business to be in the range of $2,535 million to $2,583 million. This translates to a sequential growth of 5-7% in the September quarter, which is largely in line with analysts’ estimates.

Wipro on Thursday beat analysts estimates on the net profit and revenue fronts in its April-June quarter earnings. The company’s consolidated net profit during the period was up 9% sequentially at Rs 3,232 crore, higher than the Bloomberg consensus estimate of Rs 2,827.93 crore.

Revenues at Rs 18,252 crore were up 12.4% sequentially as well as ahead of the estimate of Rs 17,630.41 crore. The company’s Ebit stood at Rs 3,473 crore, up 1.6% compared to the preceding quarter and also ahead of the estimate of Rs 3,263.94 crore. Margin at 18.8% was down 220 basis points compared to the preceding quarter. This was mainly due to wage hikes.

Wipro now expects revenue from its IT services business to be in the range of $2,535 million to $2,583 million. This translates to a sequential growth of 5-7% in the September quarter, which is largely in line with analysts’ estimates.

Attrition rate increased to 15.5% from 12.1% in the preceding quarter.

During the quarter, the company closed eight large deals which resulted in $715 million in new orders.

It added two more clients in the $100-million-plus bracket and two each in the $50-million-plus and $20-million-plus categories.

“Wipro signed an agreement to acquire Ampion on April 1, 2021, and we previously announced that it will be closed during Q1FY22. However, certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2FY22,” the company said in a statement.

“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,” Thierry Delaporte, CEO and MD, said.

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