Wipro Q1 consolidated profit flat at Rs 2,390 crore, revenue rises marginally

IT major Wipro on Tuesday reported consolidated net profit of Rs 2,390 crore for the first quarter ended June 30, as against Rs 2,388 crore in the same period last year. On the quarter-on-quarter basis, the profit rose 2.8 per cent from Rs 2,326 crore in March quarter of FY20.

The Bengaluru-based company's consolidated revenue from operations increased marginally by 1.3 per cent to Rs 14,913 crore in Q1 FY21 as compared to Rs 14,716 crore in Q1 FY20. On sequential basis, the consolidated revenue from operations declined 5.3 percent from Rs 15,711 crore in Q4 FY20.

Consolidated IT services revenue stood at Rs 14,596 crore in Q1 FY21 compared to 14,351 crore in corresponding period last fiscal.

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In dollar terms, net profit rose 0.1 per cent YoY to $23.9 billion, while gross revenue increased 1.3 per cent YoY to $149.1 billion during the June quarter of this fiscal over the year-ago period, Wipro said in a filing to the Bombay Stock Exchange.

Commenting on earnings, Thierry Delaporte, CEO and Managing Director said, "I am deeply honored to lead Wipro, an extraordinary company and an exemplary corporate citizen with a deep technology heritage built on a strong foundation of values. I have great respect for the work done by the Azim Premji Foundation, its 67 per cent economic ownership of Wipro adds greater meaning to what we do. Profitable growth will be the most important priority on my agenda. I am confident that we will be able to deliver long-term, sustainable growth in the interest of all our stakeholders."

Jatin Dalal, Chief Financial Officer said, "We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation. We also continued to sustain robust cash generation with Operating Cash Flows at 174.9 per cent of Net income."

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In the forward looking statement, Wipro said that the COVID-19 pandemic could decrease technology spending and adversely affect demand for its products. This may also affect the rate of customer spending and could adversely affect its customers' ability or willingness to purchase its offerings, delay prospective customers' purchasing decisions, impact its ability to provide on-site consulting services.

"Our operations may also be negatively affected by a range of external factors related to the COVID-19 pandemic that are not within our control," it said.

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In a separate development, Wipro said that it has signed an agreement to acquire Brazil based lVlA Servigos de lnformatica Ltda, a specialised lT services provider to financial services, retail and manufacturing sectors. The acquisition is subject to customary closing conditions and is likely to be completed in the quarter ending September 30.

Ahead of Q1 earnings, shares of Wipro ended Tuesday's trade at Rs 225.05, down 1.10 per cent, against previous closing price of Rs 227.55. The stock opened day's trade at Rs 229 and hit an intraday high and low of Rs 231.60 and Rs 231.60, respectively.