Wipro Q1 net profit up 12.6% to 2,390 crore

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Published: July 18, 2019 3:05:51 AM

The q-o-q growth of digital stood at 5.6% and y-o-y growth at 34.6%. BSFI segment growth remained sequentially flat at 31.6% from last quarter’s 31.5%.

Wipro Q1 net profit, Wipro share, Wipro  news, Wipro profit, Wipro profit 2019, Wipro profit and loss, Wipro profit this quarterRevenues from digital practices contribute to over 37.4% of the overall revenue – the highest of all practices during the quarter.

Bengaluru-based Wipro reported a 5.3% year-on-year increase in revenues to Rs 14,720 crore ($2.1 billion) for the quarter ended June 2019.  The company’s adjusted dollar revenues grew 4.3% y-o-y to $2.03 billion. The company’s net profit for the quarter rose 12.6% y-o-y to Rs 2,390 crore ($346 million). The company expects to grow revenues between 0-2% in constant currency terms in the second quarter of FY20, going by current conditions in all the markets it operates in.

Ebitda margin stood at 18.4%, a 60 basis points decline from Q3FY19’s 19%. “Q1 is typically a weak quarter for us and we entered the quarter with macro uncertainties,” said Abidali Neemuchwala, chief executive officer, Wipro. Before the results, HDFC Securities had predicted the company to guide for revenue growth between 0-2% for Q2FY20. For the same quarter in FY19, the company had adjusted its margins after divestment of its data centre business. The share buyback plan, which was announced by the company’s board during last quarter’s result, is on track for the company.

Macro uncertainties continue to provide headwinds for Wipro, constituted by delay in project inception and customer decision making. Despite these, the company has witnessed three of its existing clients move up the ladder to $100 million bucket. There has been no new customer addition.

Revenues from digital practices contribute to over 37.4% of the overall revenue – the highest of all practices during the quarter. The q-o-q growth of digital stood at 5.6% and y-o-y growth at 34.6%. BSFI segment growth remained sequentially flat at 31.6% from last quarter’s 31.5%.

Younger business units like communications and technology showed sequential growth of 0.2% and 0.4%, respectively, but the y-o-y growth of technology unit fell to 13.0 % from 14.3% in Q1FY19. “Our health business unit faced political uncertainties in the west this quarter and manufacturing unit dropped to 7.9% from 8.4% year-on-year due to soft business conditions in Europe,” said Bhanumurthy, COO, Wipro.

The tech giant has ramped up local hiring to around 65% in the markets it operates in. There has been an influx of over 6,000 freshers globally with an aim to set teams in place to meet demands in automation and digital technology, for the ongoing financial year. The company’s attrition remained flat at 17.6%, comparable to last quarter.

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