Wipro, country’s leading IT services company on July 13 reported 11.9 percent year-on-year basis growth in net profit in the first quarter that ended on June 30 2023.
However, the net profits were on a decline by 6.6 percent due to major financial matrics. Company’s consolidated profit in Q1FY24 stood at Rs 2,870 crore, missing analyst estimates of Rs 2,976 crore for this quarter.
The Bangalore-based IT giant posted a net profit of Rs 2,563 crore in the same period a year ago. The revenue for this quarter of Wipro grew 6 percent YoY at Rs 22,831 crore as compared to Rs 21,528 crore in the same quarter last year, missing estimates of Rs Rs 23,014 crore.
The decline in revenue was expected due to weak banking, financial services and insurance (BFSI) vertical as well as its higher exposure to consulting at a time that discretionary spends have gone down.
For Q2FY24, Wipro has predicted a revenue growth of -2 percent to 1 percent in constant currency growth. Wipro also added total bookings of $3.7 billion for the quarter. Wipro’s operating cash flows stood at 130 percent of its net income.
CEO of Wipro, Thierry Delaporte in the statement said that the company has constantly maintained new business momentum despite a gradual reduction in discretionary spending.
“Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins.. The launch of Wipro ai360 and the USD 1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses,” he further added.
Shares of Wipro closed 0.70 percent higher at Rs
