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Wipro races ahead of peers, posts 12.4% Q1 revenue growth

In comparison, Infosys revenue grew by 6% q-o-q whereas Tata Consultancy Services reported revenue growth at 3.9%.

Published: 16th July 2021 07:37 AM  |   Last Updated: 16th July 2021 12:22 PM   |  A+A-

Wipro campus

Wipro Campus (Photo | Special Arrangement)

Express News Service

BENGALURU:  India’s third-largest software services exporter Wipro outperformed its industry peers by posting the strongest revenue growth in Q1 FY 22 than the last 38 quarters with 12.4% revenue growth sequentially at Rs 18,252 crore. In comparison, Infosys revenue grew by 6% q-o-q whereas Tata Consultancy Services reported revenue growth at 3.9%.

Wipro is also expecting a revenue growth rate at 26-28% for H1, FY22, higher than the industry average. For the Q2, FY22, the IT firm has given a revenue guidance of 5-7%. The operating margin at 18.8%, below 220 basis points compared to last quarter, according to Wipro’s Chief Financial Officer Jatin Dalal, was impacted due to salary hikes, skill-based bonuses as well as $1.6-bilion acquisition of London based consulting firm Capco, which was completed during the June quarter.

Dalal told The New Indian Express that the financing for the Capco deal was made possible due to $750-million overseas debt financing whereas the rest of the funding came through internal approvals. The tech firm’s net profit rose by 8.7% to Rs 3,232 crore compared to Rs 2,811 crore in last quarter.

Rising attritions remains a concern, according to the CEO, Thierry Delaporte, which hit 15.5% for the quarter even as there was a net addition of 12,000 employees during the period.”Engaging and investing in quality talent will continue to remain our focus and we will ensure that the talent concern doesn’t impact our supply side on projects,” he added. The company has also embarked on a robust hiring plan with 33% more freshers being onboarded during FY22 compared to FY21.

“We will be hiring 6,000 freshers during Q2, FY22 and offer 30,000 more jobs to college graduates next financial year. We are committed to the supply side not being a constraint for our projects,” Saurabh Govil, Chief Human Resources Officer, said.

Wipro’s top client acquisitions worth over $50 million was a key feature for the June quarter. The company added 129 new clients during Q1, almost double than the last quarter with a healthy revenue jump sequentially from client geographies including Americas, Europe and Asia Pacific.

Banking and other financial services grew by 23%, consumer by 14%, communications by 12.4%, energy and natural resources by 11.8% whereas health and manufacturing showed marginal growth and de-growth respectively.



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