Thread by @BiIndia

#Wipro’s net profit drops 12% drop in Q1 as #recession fears grip its non-US clients

businessinsider.in/business/corpo…

By @jainrounak

IT services major #Wipro today reported a 12% decline in its #profits to ₹2,717 crore in the first quarter, as against ₹3,087 crore in the previous quarter.

The IT company’s revenues grew 3% sequentially to ₹22,001 crore in the same period, in line with analyst expectations.

Offering guidance for the September quarter, #Wipro said it expects IT services business revenue to be in the range of $2.82-2.87 billion, which translates to a sequential 3-5% growth.

However, Wipro CEO and MD Thierry Delaporte said the company is “pleased with the outcomes”.

#Wipro noted that it closed 18 large deals totaling to $1.1 billion in total contract value in June quarter, with its order book growing by 32%. Its customers in the over $100 million range grew from 13 to 20, while those between $50-100 million grew from 42 to 50, year-on-year.

Looking at the numbers, it is clear that #Wipro’s margins have been stressed, and a falling #rupee has not helped the company’s bottomline. The company’s margins contracted on both sequential as well as year-on-year basis.

#Wipro’s non-US profits has taken a big hit, with #Europe and #Asia-Pacific, Middle East and Africa reporting major declines. The contribution from the US region went up from 68% in the last quarter to 74% in this quarter, further increasing Wipro’s dependence on this region.