Wipro Q1 Results: Profit falls 21% YoY to Rs 2,563 cr; firm pegs Q2 revenue guidance at 3-5%

Its revenue for the quarter rose 17.9 per cent YoY to Rs 21,528.6 crore. Its operating margin in IT services segment decreased by 200 bps QoQ to 15 per cent. In constant currency (CC) terms, IT services segment revenue increased by 2.1 per cent QoQ and 17.2 per cent YoY at $2,735.5 million.

Wipro CFO Jatin Dalal, said its operating margins have bottomed out at 15 per cent.

In Q2, the company expects QoQ revenue growth of 3 to 5 per cent. “We expect the revenue from our IT Services business to be in the range of $2,817 million to $2,872 million,” it said in an investor presentation.

Wipro said all strategic market units and global business lines grew in double digits YoY CC in Q1. Its order book in TCV terms grew 32 per cent and in ACV terms grew 18 per cent YoY. The total number of employees jumped to 2.58 lakh with the addition of 15,446 employees during the quarter. Wipro’s attrition rate stood at 2.3 per cent.

Wipro CEO and MD Thierry Delaporte said the company’s order bookings grew 32 per cent YoY in total contract value terms, powered by large transformational deals, and the 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 efficient as an organization, while staying focused on serving our clients even better,” he said.

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In terms of sector mix, Wipro earns 35.4 per cent of its revenue from banking, financial services and insurance, followed by 18.5 per cent in consumer and 11.5 per cent in health. It earned 62 per cent of its revenue in USD.