Wipro Q1 net up 12.5% at 2,387.6 crore

New Delhi: IT major Wipro Ltd on Wednesday posted a 12.5 per cent rise in consolidated net profit at Rs 2,387.6 crore for the April-June quarter, and guided for up to 2 per cent sequential revenue growth for the July-September period.

Its revenue increased by about 5.3 per cent to Rs 14,716.1 crore during the reported quarter, compared to Rs 13,977.7 crore in the year-ago period. The Bengaluru-based company's consolidated income rose by about 5 per cent to Rs 15,566.6 crore during the reported quarter. Wipro's mainstay IT services revenue was $2,038.8 million, up 4.3 per cent year-on-year.

The company, which competes with rivals like Tata Consultancy Services and Infosys, had earlier said its IT services revenues in June 2019 quarter are likely to be in the range of $2,046 million to $2,087 million, excluding the impact of the divestment of its Workday and Cornerstone On Demand business.

For the July-September quarter, Wipro expects its IT services revenue to be in the range of $2,039 million to $2,080 million -- translating into a sequential growth of up to 2 per cent. "We delivered IT services margins of 18.4 per cent and free cash flows of 98.8 per cent of our net income. We had a slower start to the year, we however remain focused on our operations and continue to invest in talent and capabilities for the future," Wipro Chief Financial Officer Jatin Dalal said.

Wipro saw a sequential drop of 3.8 per cent in net profit from Rs 2,483.5 crore in March 2019 quarter, while revenue dropped 1.9 per cent from Rs 15,006.3 crore in the previous quarter. "Our efforts on client mining have resulted in an addition of three customers in more than $100 million bucket. We will continue to build differentiated capabilities to drive business transformation for our customers by investing in our big bets," Wipro CEO and Executive Director Abidali Z Neemuchwala said.

Wipro's topline numbers lag behind those of larger rivals TCS and Infosys that announced their first quarter performance last week.