BENGALURU: IT major Wipro on Wednesday missed street estimates, and posted a 20.9% decline in consolidated net profit for the first quarter ended June 30, 2022 at Rs 2,563.6 crore compared to Rs 3,242.6 crore in the same quarter last year.
Apart from higher employee-related costs, other income too was significantly lower during the first quarter compared to the year-ago period. Analysts had predicted a net profit decline in single digits.
Its revenue from operations for the first quarter stood at Rs 21,528.6 crore, an increase of 17.9% compared to Rs 18,252.4 crore in the same quarter last year. The company's operating margin for the quarter stood at 15%, a decrease of 200 bps Q-o-Q.
Thierry Delaporte, CEO and Managing Director, Wipro said the company has made significant investments in growth drivers.
"Our order bookings grew 32% Y-o-Y, and our pipeline is at an all-time high," he said, adding there are no signs of a slowdown.
Jatin Dalal, Chief Financial Officer said the company is consistently investing in solutions and capabilities, and at 15% of operating margins, we have bottomed out.
The Americas and Europe continued to be top markets for the company.
The company's Banking, Financial Services and Insurance sector grew significantly during the quarter.
Wipro said its revenue from IT Services business will be in the range of $2,817 million to $2,872 million in the second quarter. This translates to a sequential growth of 3-5%.
The company also sees a huge demand for cybersecurity services and cloud. In recent times, Wipro has acquired many companies such as Rizing, a global SAP consulting firm and CAS, a consulting and programme management company, and it sees growth potential in these companies.
Shares of the company on Wednesday closed at Rs 412.20, up 1.63% from its previous close on the BSE.