Wipro Q1 results: Net profit flat at Rs 2,390 crore; still beats Street estimates

Analysts in an ET NOW poll had projected the figure at Rs 2,101 crore.

Wipro reports flat Q1 net income at Rs 2,390 crore; still beats Street estimates
Wipro on Tuesday posted a flat 0.11 per cent year-on-year (YoY) growth in net profit at Rs 2,390.40 crore for the quarter ended June 30. It had reported a net profit of Rs 2,387.60 crore in the corresponding quarter last year.

Analysts in an ET NOW poll had projected the figure at Rs 2,101 crore.

Consolidated revenue of the company increased 1.33 per cent YoY to Rs 14,913.10 crore in Q1FY21, over Rs 14,716.10 crore in the same period last year.


Jatin Dalal, CFO, Wipro said, “We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation. We also continued to sustain robust cash generation with operating cash flows at 174.9 per cent of net income.”

Earnings per share (EPS) increased 5.7 per cent YoY to Rs 4.20 for the quarter ended June 30.

Sharing the forward-looking statement, Wipro added that the conditions caused by the coronavirus pandemic could decrease technology spending. This may adversely affect demand for the company’s products and also affect the rate of customer spending which could adversely affect the customers’ ability or willingness to purchase its offerings.
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“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,” Wipro said.

Revenue from IT services increased 1.70 per cent YoY to Rs 14,595.60 crore during April-June period. However, the figure declined 4.58 per cent on quarter-on-quarter basis.

The company announced its results post market hours. Earlier, shares of the company closed 1.10 per cent down at Rs 225.05, while the benchmark BSE Sensex settled 1.80 per cent lower at 36,033.
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