IT-Major Wipro reports ~21% decline in PAT at Rs2,563.60 crore in Q1FY23

21 Jul 2022 , 03:16 PM

Wipro Limited reported a fall of 20.60% in its Net Profit at Rs2,563.60 crore in the first quarter ended June 30, 2022, as compared to Rs3,232 crore in the previous corresponding quarter. It also witnessed a downfall of 16% in net profit against the previous quarter.

However, the company recorded a 17.90% yoy jump in revenue at Rs21,529 crore.

Company stated that the decline in net profit was due to increased investment and elevated employee costs, as well as a higher base in the previous year on account of a one-time settlement.

Despite macroeconomic headwinds, India’s fourth largest software services firm expects revenue to grow 3-5% sequentially, or between $2.82 billion and $2.87 billion, in the current July-September quarter, exceeding analysts’ expectations of 2.5-4.5%.

Operating margins fell 200 basis points sequentially to 15% due to wage increases and currency headwinds, as compared to 18.80% in the same quarter last year.

Revenue in the IT services segment was $2.74 billion, up 13.3% yoy and in line with expectations. In constant currency, the company grew by 2.1%, in line with the 1-3% sequential revenue growth it predicted for April-June.

At around 3.18 PM, Wipro Ltd’s counter was at Rs414 up by Rs1.8 or 0.44% from its previous closing of Rs412.20 on the BSE.