Wipro profit up 19% year-on-year, decline sequentially

IT services leader Wipro reported consolidated net profit of 2,930.7 crore in the quarter ended September 2021, posting an 18.9% year-over-year increase. On a sequential basis, its net income decreased 9.6 percent due to salary increases and depreciation charges on the Capco acquisition.

Revenue increased 30.1% year-on-year to 19,667.40 crore in the quarter and 7.8% quarter-on-quarter. IT services, which contribute more than 95% of Wipro’s total revenue, was $ 2.58 billion for the September quarter, an increase of 6.9% sequentially and 29.5% % year-on-year.

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The company expects revenue from the IT services business to be between $ 2.631 billion and $ 2.683 billion for the third quarter, resulting in sequential growth of 2-4%.

The IT services operating margin for the September 2021 quarter was 17.8%, down 104 basis points from the prior quarter.

“We have kept our second quarter operating margins within a narrow range, even after fully absorbing the impact of recent acquisitions and investing significantly in sales, capabilities and talent,” said Jatin Dalal, Managing Director financial.

“The second quarter results show that our business strategy is working well. We recorded sequential organic growth of over 4.5% for the second consecutive quarter, which translated into 28% year-on-year growth in the first half of this fiscal year, ”said Thierry Delaporte, CEO and CEO of Wipro, adding, “We have passed the $ 10 billion annualized revenue generation rate. The majority of our growth is driven by volumes and the demand environment remains very strong. Our pipeline is one of the highest in recent quarters with many medium and small transactions. “

Delaporte, who was here at the Wipro campus in Sarjapur for the first time after taking up the torch in July of last year, added: “We have experienced secular growth in all markets, sectors and industries. global. Our recent acquisitions have also exceeded expectations. “

There has been significant traction in all markets; the two main markets, the Americas and Europe, grew 15% and 29% year-on-year, respectively, even without recent acquisitions, he added.

In his commentary, Delaporte further said that the demand environment continues to be very strong and that the company’s pipeline is a clear reflection of this.

“In fact, our pipeline is among the highest in recent quarters. We have a good mix of large and medium sized transactions. There are actually a lot of midsize deals and slightly smaller processing deals out there right now, ”he explained.

The quarter saw Wipro attrition at 20.5 percent, an increase of 15.5 percent from the previous quarter. The tech company launched a second hike this year for around 80% of its employees in September. He also took on 8,150 freshers in the second quarter.