DBT Bureau
Bengaluru, 19 July 2024
Wipro on Friday posted a better-than-expected Q1 performance as the company posted a net profit of Rs 3,003 crore, an increase of 4.6% from a year ago.
Its gross revenue stood at Rs 21,964 crore, a fall 3.8% over the same period last year.
Revenue from IT services, which contributes more than 95% of gross revenue, stood at $2.625 billion, a decline of 1% over the previous quarter in constant currency term.
Its total deal bookings remained robust at $3.28 billion, while large deal bookings stood at $1.154 billion.
The company expects its revenue growth to improve in the second quarter and project IT Services revenue to be in the range of $2.6 billion to $2.652 billion, which translates to a sequential guidance of -1% to 1% in constant currency terms.
“We recorded another quarter of total large deal bookings over $1 billion, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2,” Srini Pallia, CEO of Wipro said.
The company posted an operating margin of 16.5%, an improvement of 10 basis points over the previous quarter.
Among verticals, the company said it is witnessing good traction in its financial consulting subsidiary, Capco’s business as it posted growth for the third consecutive quarter. BFSI vertical in both Americas and Europe also saw improvement during the quarter. It also said that manufacturing and consumer were the other verticals, which showed improvement in the first quarter.
After six quarters of decline in headcount, Wipro added 337 employees on net basis during the quarter, reversing the trend. This addition takes the total headcount to 2,34,391 employees. Its attrition rate declined marginally to 14.1% from 14.2% reported in the previous quarter.
The company said it will start hiring of freshers after one year. “We plan to recruit around 10,000-12,000 people in the current year from campuses. We have already onboarded around 2,000 freshers in the first quarter,” Chief HR officer of Wipro, Saurabh Govil said.
