This IT Major Q1 Net Profit Falls 21%, Stock Gains 1.59%

IT services major Wipro Ltd on Wednesday reported nearly a 21% year-on-year decline in its consolidated net profit to ₹2,563.6 crore for the first quarter ended June 2022. The profit for the period (attributable to the equity holders of the company) stood at ₹3,242.6 crore in the year-ago period, according to a PTI report.

Despite the decline in net profit, the share of Wipro gained 1.59% in trade today to close at 412.10 apiece. The 52-week high is 739 apiece and 52-week low is 391 apiece.

The net profit was down 20.6 per cent on a year-on-year basis, according to a filing.

The Bengaluru-headquartered company's revenue from operations rose nearly 18 per cent year-on-year to ₹21,528.6 crore during the just-ended quarter. For the September quarter, the company expects revenue from the IT services business to be in the range of USD 2,817 million to USD 2,872 million. This reflects a sequential growth of 3-5 per cent, added the PTI report.

Its CEO and Managing Director Theirry Delaporte said: "We have made significant investments in Wipro's growth engine and are very pleased with the outcomes".

"Our order bookings grew 32 per cent YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and be efficient as an organisation while staying focused on serving our clients even better," Delaporte added.

The company's Chief Financial Officer, Jatin Dalal said, "At 15 per cent of operating margins, we believe that we have bottomed out".

Wipro, Dalal said, is consistently investing in solutions and capabilities for growth to further strengthen its position of being a strategic partner for clients, as per the PTI report.