Wipro net profit rises 12.6%, revenue rises 5.3% in Q1.

Bengaluru/NewDelhi: Global software major Wipro on has reported a 12.6 percent year-on-year growth in net profit to Rs 2,390 crore for the first quarter of FY20. The company had registered annual growth of Rs 2,094 crore in the same period last year.

The company’s gross revenue was Rs 14720 crore, an increase of 5.3% Year on Year, as compared to Rs 13,978 crore last year, Wipro said in a BSE filing. Its IT services business grew 4.3 percent to Rs 14,189 crore for the quarter from Rs 13,841 crore a year ago, but declined 5 percent sequentially from Rs 14,565 crore.

Operating margin for the quarter marginally increased to 18.4 percent from 17.6 percent a year ago, but declined from 19 per cent a quarter ago.

Wipro in its outlook for the second quarter ending September 30, said that it expects revenue from IT Services business to be in the range of $2,039 million to $2,080 million. This translates to a sequential growth of 0.0% to 2.0%, it said.

“Our efforts on client mining have resulted in an addition of three customers in $100 million bucket in Q1. We will build differentiated capabilities to drive business transformation for customers by investing in our big bets,” said Wipro Chief Executive Abidali Neemuchwala.

“We delivered IT services margins of 18.4 per cent and free cash flows of 99 per cent of net income. Though we had a slower start to the year, we are focused on our operations and invest in talent and capabilities for the future,” said Chief Financial Officer Jatin Dalal.