Wipro June Quarter Profit Drops Nearly 3% To Rs 2,390 Crore
Wipro said its IT services segment revenue decreased 4.4% on a year-on-year basis
Here are 10 things to know about Wipro earnings:
IT services revenue declined 4.58 per cent to Rs 14,595.60 crore in the quarter ended June 30, compared with Rs 15,296 crore in the previous quarter. However, on a year-on-year basis, it grew 1.70 per cent.
In constant currency terms, the IT services segment revenue decreased 4.4 per cent compared to the year-ago period, Wipro said.
Revenue from the banking, financial services and insurance (BFSI) segment declined 3.99 per cent sequentially to Rs 4,482.80 crore in the April-June period.
Wipro said the conditions caused by the coronavirus pandemic could adversely affect its future sales, operating results and overall financial performance. "Our operations may also be negatively affected by a range of external factors related to the COVID-19 pandemic that are not within our control," it added.
This is Wipro's first earnings announcement under the new CEO, who replaced Abidali Z Neemuchwala with effect from July 6.
“I am deeply honored to lead Wipro, an extraordinary company and an exemplary corporate citizen with a deep technology heritage built on a strong foundation of values," said Thierry Delaporte, CEO and managing director, Wipro.
"Profitable growth will be the most important priority on my agenda. I am confident that we will be able to deliver longterm, sustainable growth in the interest of all our stakeholders.”
Operating margin - a key measure of profitability - in the IT services segment improved to 19.0 per cent in the June quarter, compared to 17.6 per cent in the January-March period.
“We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation," said chief financial officer Jatin Dalal.
At the end of June, the rupee was down 5.78 per cent against the greenback on a year-to-date basis. Any depreciation in the rupee boosts the profitability of IT companies, which earn the lion's share of their revenue in dollars.