Wipro Q1 results: Net profit falls 21% to Rs 2,564 cr as expenses rise

IT major Wipro Ltd reported a 21% fall in June-quarter profit on Wednesday as higher employee-related costs pushed up the information technology services firm's overall expenses.

June-quarter consolidated net profit came in at Rs 2,564 crore, compared with Rs 3,243 crore a year ago.

Revenue from operations rose nearly 18% to Rs 21,529 crore as against Rs 18,048 crore in Q1FY22. 

Total quarterly expenses of the Bengaluru-headquartered firm jumped 22.9% to Rs 18,648 crore, with voluntary IT services attrition at 23.3%.

For the September quarter, the company expects revenue from the IT services business to be in the range of $2,817 million to $2,872 million. This reflects a sequential growth of 3-5%.

Its CEO and Managing Director Thierry Delaporte said: "We have made significant investments in Wipro's growth engine and are very pleased with the outcomes".

"Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and be efficient as an organisation while staying focused on serving our clients even better," Delaporte added.

The company's Chief Financial Officer, Jatin Dalal said, "At 15% of operating margins, we believe that we have bottomed out".

Wipro, Dalal said, is consistently investing in solutions and capabilities for growth to further strengthen its position of being a strategic partner for clients. 

On Wednesday, the company's scrip on BSE closed 1.6% higher at Rs 412.20.