Wipro, India's fourth largest IT player, on Thursday reported a 10.9% year-on-year increase in net profit for the first quarter, boosted by a reduction in expenses and foreign exchange gains, even as revenue grew under 1%. Sequentially, both profit and revenue fell - by 6.7% and 1.6%, respectively.
The Bengaluru-based company posted a net profit of Rs 3,336.5 crore on revenue of Rs 22,134.6 crore in the quarter ended June 30.
Wipro faced a compression in business in all geographies of Europe, Americas 2 and APMEA (Asia Pacific, Middle East and Africa) and business verticals such as banking, financial services & insurance and consumer in the April-June period compared with the prior quarter.
"We started the quarter facing macro uncertainties which kept overall demand muted...Retail, CPG (consumer packaged goods) and manufacturing in these sectors have been specifically impacted by tariffs," chief executive and managing director Srinivas Pallia said. "Even though discretionary budgets are tight, outsourcing renewals are creating new opportunities for us to gain wallet share," he added.
Wipro forecast second-quarter revenue in dollars to be between $2.50 billion and $2.6 billion in constant currency, or within 1% on either side of the first quarter revenue of $2.59 billion, which fell 2% sequentially but topped the upper end of its projection of $2.51-2.56 billion. An ET poll of brokerages had forecast the first-quarter revenue to be $2.57 billion. The quarterly performance and deal momentum boosted Wipro's American Depositary Receipts on the New York Stock Exchange by more than 3% in opening trades. On Indian stock exchanges, Wipro's shares closed lower by just under 1%. Results were announced after market hours in India.
"BFSI pipeline and deal momentum is very strong. Clients are focused on cost optimisation and vendor consolidation, that's where we are winning. Having said that, clients are also spending money on AI, data and that's where we are staying focused on...AI efficiencies continue to evolve," Pallia said with a caution, "I would certainly say that there is uncertainty." Returning to profitable growth, he added, remains a priority.
Year-on-year, the quarter was salvaged by growth in the health and technology & communications segments along with a 5.5% rise in its largest market by geography, Americas 1.
The Bengaluru-based company posted a net profit of Rs 3,336.5 crore on revenue of Rs 22,134.6 crore in the quarter ended June 30.
Wipro faced a compression in business in all geographies of Europe, Americas 2 and APMEA (Asia Pacific, Middle East and Africa) and business verticals such as banking, financial services & insurance and consumer in the April-June period compared with the prior quarter.
"We started the quarter facing macro uncertainties which kept overall demand muted...Retail, CPG (consumer packaged goods) and manufacturing in these sectors have been specifically impacted by tariffs," chief executive and managing director Srinivas Pallia said. "Even though discretionary budgets are tight, outsourcing renewals are creating new opportunities for us to gain wallet share," he added.
Wipro forecast second-quarter revenue in dollars to be between $2.50 billion and $2.6 billion in constant currency, or within 1% on either side of the first quarter revenue of $2.59 billion, which fell 2% sequentially but topped the upper end of its projection of $2.51-2.56 billion. An ET poll of brokerages had forecast the first-quarter revenue to be $2.57 billion. The quarterly performance and deal momentum boosted Wipro's American Depositary Receipts on the New York Stock Exchange by more than 3% in opening trades. On Indian stock exchanges, Wipro's shares closed lower by just under 1%. Results were announced after market hours in India.
"BFSI pipeline and deal momentum is very strong. Clients are focused on cost optimisation and vendor consolidation, that's where we are winning. Having said that, clients are also spending money on AI, data and that's where we are staying focused on...AI efficiencies continue to evolve," Pallia said with a caution, "I would certainly say that there is uncertainty." Returning to profitable growth, he added, remains a priority.
Year-on-year, the quarter was salvaged by growth in the health and technology & communications segments along with a 5.5% rise in its largest market by geography, Americas 1.
