Home >Companies >Company Results >Wipro Q1 consolidated net profit flat at 2,390 cr

IT services firm Wipro Ltd on Tuesday reported its consolidated net profit for the June quarter was flat at 2,390 crore as against 2,388 crore in the year-ago period.

The company's consolidated revenue rose marginally to 14,913 crore as compared to RS 14,716 crore in June 2019.

Wipro's consolidated IT services revenue during the quarter also rose marginally to 14,596 crore versus 14,351 crore in year-ago period.

The company's IT services EBIT margin improved to 19.1% as against 17.6% in the previous quarter and 18.4% in June 2019.

Total income of Wipro was almost flat at 15,571.4 crore in the April-June quarter compared to 15,566.6 crore in the same quarter of the last financial year.

The company said its IT services segment added 42 new customers in June quarter and that the IT services segment had a total headcount of 181,804 at the end of June.

"The conditions caused by the Covid-19 pandemic could decrease technology spending, adversely affect demand for our products, affect the rate of customer spending and could adversely affect our customers’ ability or willingness to purchase our offerings, delay prospective customers’ purchasing decisions, adversely impact our ability to provide on-site consulting services and our inability to deliver our customers or delay the provisioning of our offerings, all of which could adversely affect our 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," the company said in a stock exchange filing.

Wipro also said on Tuesday that it is acquiring Brazil-based IVIA Servicos de Informatica Ltda for $22.4 million. The aquisition is likely to be completed in the quarter ending 30 September, 2020.

On Tuesday, the Wipro scrip on BSE closed 1% lower at 225.30.

Wipro Chairman Rishad Premji on 13 July said the company has not laid off any employee due to the Covid-19 impact and has no plans to do so for now.

Premji said this in response to a question by a shareholder at the 74th annual general meeting (AGM) of the company, held virtually.

"We are trying to drive cost reduction through various other means, through operationally and otherwise, but we have laid off no people and have no plans to lay off anybody at the moment," he said.

This was his first annual general meeting (AGM) as the Chairman of Wipro, after taking charge in July last year.

During his address to the AGM, Premji said without question, employee safety and well-being has been and will remain of paramount importance to us.

"In March, at the early onset of COVID-19, we triggered our business continuity plans and enabled work from home for about 93 per cent of our employees across the world. It was heartening and inspiring to observe the seamless team- work which enabled the smooth execution of this massive change," he said.

Wipro's new CEO Thierry Delaporte said profitable growth will be the most important priority on his agenda.

"We will do everything to regain the momentum in the marketplace. Building on our strong foundation, we will make bold bets and stretch goals. We will aim to drive a high- performance culture even as we steadfastly hold to our cherished values," he said.

"I am confident that we will be able to deliver long- term, sustainable growth in the interest of all our stakeholders," he added.

A Capgemini Group veteran Delaporte took over as Wipro's Chief Executive Officer and Managing Director effective from July 6.

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