Wipro Announces Rs. 2,390 Crore Net Profit For Q1 Of FY20

On July 17, global software giant Wipro announced its year-over-year growth of 12.6% in the net profit for its FY20’s first quarter, up from Rs.2,094 last year to Rs.2,390 crore. Sequentially, the quarter’s net profit marked a 4.2% quarter-over-quarter decline (Rs.2,494 crore one quarter ago).

According to a regulatory filing to the BSE, Wipro’s total revenue went up 5.3% from Rs.13,978 crore to Rs. 14,720 crore in the first quarter. The growth in revenue in the quarter was slightly down 0.2% quarter-over-quarter from Rs.15,006 crore.

The company’s business in IT services increased by 4.3% to hit the mark of Rs. 14,189 crore in the quarter, up from Rs. 13,841 crore last year. However, it sequentially went down from the mark of Rs. 14,565 crore in the previous quarter.

In addition, under the IFRS (International Financial Reporting Standard), the quarter’s net income reached US$346M (roughly 35 crores), revenue US$2.14B (roughly Rs. 22 lakhs) and IT business US$2,039M (roughly Rs. 20 lakhs).

Besides, the quarter’s operating margin rose from 17.6% to 18.4%, up 0.8% year-on-year. Sequentially, it marked a quarter-on-quarter decline of 0.6% from 19%.

For Q2 of FY20 (from July to September), Wipro targeted to hit a total revenue from $2,039M to $2,080M, registering a 0-0.2% growth over the previous quarter.

Said Abidali Neemuchwala, Wipro’s CEO:

And according to Jatin Dalal, Wipro’s CFO, the company offered 18.4% IT services margins and 99% free cash flows of the net income. He added that though the company had a slow start, it paid attention to all operations as well as investing in talents and future capabilities.

It is known that Wipro recruited 3,425 computer geeks for Q1, bringing its total employees to reach 174,850 from 171,425 in the previous year and 160,846 one year ago.

In addition, on the BSE, Wipro’s scrip of the face value of Rs.2 remained subdued to close at Rs.259.70 on July 17, trading against the Rs. 260.5 closing price on July 16 and the Rs. 262.75 opening price.