Wipro Q1 net profit rises 9% QoQ; IT services revenue at Rs 18,368 crore beats estimates

IT services firm Wipro on Thursday reported a 9 per cent sequential rise in its consolidated net profit at Rs 3,242.6 crore for the first quarter fiscal 2022.

The company's IT services segment revenue during Q1FY22 rose 12.45 percent to Rs 18,368.4 crore as compared to Rs 16,334 crore, QoQ. In dollar terms, the company reported revenue growth of 12.2 percent at $2,414.5 million as against $2,152.5 million, sequentially.

Constant currency (CC) revenue growth was at 12 percent.

“Despite the severe onslaught of the pandemic, we delivered our best-ever quarter, with secular growth across all SMUs, Sectors and GBLs. Our sequential revenue growth of 12.2% was well ahead of the top-end of our guidance range, both organically and with Capco,” said Thierry Delaporte, CEO and Managing Director, Wipro.

EBIT during the quarter ended June 2021 increased 2 percent to Rs 3,485.3 crore from Rs 3,417 crore, while EBIT margin weakened by 190 bps to 19 percent from 20.9 percent, sequentially.

The company's earnings were higher than CNBC-TV18 analysts' poll estimates on all fronts.

"Wipro signed an agreement to acquire Ampion on April 1, 2021, and we previously announced that it will be closed during Q1’22. However certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2’22," Wipro said in a regulatory filing.

The company said it issued its first-ever dollar denominated bond offering of $750 million with a 5-year tenor in June 2021.

Jatin Dalal, Chief Financial Officer said: "We delivered robust growth in EPS of 41 percent YoY even as we continued to invest for growth. At 103.7 percent of our net income, our operating cash flows for the quarter remained healthy. I am also pleased to share that we have successfully issued our debut bond offering in the international markets for $750 million."

On Thursday, the shares of Wipro ended 2.52 percent higher at Rs 575.75  apiece on the BSE.