Bengaluru-based IT major Wipro has reported a 20.68 per cent year-on-year (YoY) fall in net profit at Rs 2,563.6 crore for the quarter ended June 30, missing street expectations. On a sequential basis, profit was down 16.9 per cent from Rs 3,087 crore in the last quarter. 

Revenue from operations stood at Rs 21,528.6 crore, a 17.9 per cent increase YoY. On a quarter-on-quarter (QoQ) basis, revenues increased by 3.2 per cent from Rs 20,860 crore in the last quarter. Revenue from the IT services segment stood at $2,735.5 million, an increase of 13.3 per cent YoY. However, the IT services operating margin for the quarter was at 15 per cent, a decrease of 200 bps quarter-on-quarter. 

CEO and Managing Director, Thierry Delaporte said, “We have made significant investments in Wipro’s growth engine and are pleased with the outcomes. Our order bookings grew 32 per cent YoY in Total Contract Value (TCV) terms, powered by large transformational deals, and our pipeline today is at an all-time high.” 

Wipro reinforced investments for business growth, to remain agile in the market and efficient as an organisation, while staying focused on serving clients better. 

The company had a headcount of 2,58,574 employees at the end of the June quarter. The attrition rate stood at 23.3 per cent, against 23.8 per cent in the last quarter. 

Jatin Dalal, Chief Financial Officer, said, “We are consistently investing in solutions and capabilities for growth, to further strengthen our position as a strategic partner for our clients. At 15 per cent of operating margins, we believe that we have bottomed out.”

For the quarter ending September 30, 2022, the IT major expects revenue from the IT services business to be in the range of $2,817 million to $2,872 million, translating to a sequential growth of 3 per cent to 5 per cent.

Omkar Tanksale, Research Analyst, Axis Securities, said, “The results haven’t met expectations. The operating margin and attrition rate are worrying. The dip in numbers can be attributed to its lack of strong execution, despite having a robust deal pipeline.” The guidance given, however, is substantial and strong momentum can be expected, going forward, he added. 

The shares of the company traded 1.63 per cent higher at Rs 412.20 a piece at the Bombay Stock Exchange (BSE) at close.closed.