Wipro Ltd.'s first-quarter revenue rose, driven by its software services segment, but margin remained under pressure.
The Bengaluru-based IT company's revenue increased 3.21% sequentially to Rs 21,528.6 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 21,489.4-crore consensus estimate of analysts tracked by Bloomberg.
Its revenue from IT services jumped 0.5% over the preceding quarter to $2,735.5 million. It grew 2.1% in constant currency.
Wipro met its own revenue guidance of $2,748-2,803 million for the first quarter. It had maintained double-digit growth for the financial year ending March 2023.
“We have guided for 3-5% growth in revenue on a sequential basis. That translates into IT services business to be in the range of $2,817-2,872 million in second quarter,” said Thierry Delaporte, managing director and chief executive officer at Wipro.
Wipro Q1 FY23 Highlights (QoQ)
Net profit fell 17% to Rs 2,563.6 crore, compared with the Rs 3,058-crore estimate.
EBIT fell 9.3% to Rs 3,085.6 crore.
Margin contracted 198 basis points to 14.3%.
12-month trailing attrition rate stood at 23.3% against 23.8% as of Mach 2022.
The company expects a moderation in attrition rates, Delaporte said. The IT company on-boarded 10,000 freshers during the first quarter.
IT Services
Revenue from IT services segment grew over the previous quarter, albeit at a slower pace.
Wipro added 18 large deals worth $1.1 billion in Q1 FY23.
The deal pipeline is at an all-time high, Delaporte said, adding he is not seeing a slowdown in IT spending. “The level of impact is giving us the confidence to achieve guidance.”
Segmental Revenue
Constant currency growth in revenue from the communications segment was the highest among other businesses in the first quarter. Energy, natural resources and utilities; and manufacturing, however, saw a decline.
Shares of Wipro closed 1.49% higher before the results were announced compared with a 1.1% rise in the benchmark Nifty 50.
(Corrects an earlier version that misstated the percentage fall in net profit.)
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