Wipro Q1 results announced: 10 key takeaways

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Bengaluru | Published: July 24, 2015 10:50:58 AM

Wipro Q1 results announced: The company reported four per cent rise in net profit at Rs 2,187.7 crore for the June quarter.

wiproWipro net profit rose four per cent at Rs 2,187.7 crore for the June quarter. (Reuters)

Wipro came out with its first quarter results on Thursday that was broadly in line with street expectations.

Here are key takeaways from the results:

1. Wipro net profit rose four per cent at Rs 2,187.7 crore for the June quarter. The company said it expects the coming quarters to be better than the April-June, 2015 period. Its total income rose 10.5 per cent to Rs 12,894.8 crore for the said quarter from Rs 11,669.4 crore in the April-June, 2014 quarter.

2. Wipro continued its investments in start-ups and announced that it has picked up minority stakes in two US-based technology firms — Talena and Vicarious.

3. Wipro’s IT services revenue, which constitutes a major share of the firm’s total earnings, saw a sequential growth of 1.1 per cent to $1.79 billion in the said quarter, meeting its revenue guidance of $1,765 million to $1,793 million. The company expects to see pick-up in momentum in the second quarter as reflected in the guidance and expects the second half to be better than the first half of the fiscal. For the July-September 2015 quarter, Wipro expects its IT services revenues to be in the range of $1,821 million to $1,857 million.

4. Wipro’s revenue growth of 0.2 per cent in constant currency terms was slightly lower than estimates.

5. For the quarter ended June 30, Infosys reported a sequential revenue growth of 4.5 per cent, while TCS posted 3.5 per cent jump.

6. Wipro’s IT services segment had a headcount of 1,61,789 as of June 30, 2015, up from 158,217 in March this year with an addition of 3,572 people. The first quarter has a high attrition on account of appraisal cycles and employees leaving for higher education. Wipro offered salary hikes of about seven per cent to offshore and about two per cent to onsite employees.

7. Revenues from IT products segment stood at Rs 820 crore, up 7 per cent year-on-year.

8. The company added 36 new customers during the quarter.

9. Wipro is focussing heavily on digital services to shore up margins and revenues. It has set up a team of 200-250 professionals as part of its efforts to ramp up revenues from digital services.

10. Talking about verticals, there was growth in business from sectors like consumer goods, transportation and government, manufacturing and Hi-Tech.

At 10.45 am on Friday, Wipro shares were down 3.14 per cent. On NSE, it is down 3.07 pr cent.

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