Wipro Q1 results beat estimates; net profit rises 2% to Rs 2,121 crore

Wipro, country's third-largest software services exporter, reported a two percent rise in first-quarter net profit on Friday, beating estimates, helped by higher revenue from its Banking, Financial Services and Insurance business (BFSI).

Net profit for the June quarter rose to Rs 2,121 crore from Rs 2077 crore a year earlier, the Bengaluru-headquartered company said in a statement.

Wipro net profit topped the Rs 1,952 crore profit expected by analysts, according to Thomson Reuters data.

Revenue from IT services grew by about 5 per cent to Rs 13,700 crore while the BFSI business grew 17.5 per cent to Rs 4,110 crore.

“We have seen pickup in spending in the developed markets, particularly in North America and BFSI. Our investments in Digital continue to help us build differentiation in key industry segments, which is resulting in a consistent improvement in our client metrics. We have had a good quarter of order bookings and I am confident we are moving in the right direction,” said Abidali Neemuchwala, CEO, Wipro. 

Wipro also said that it would buy US-based Alight Solutions' India operations for $117 million in cash. Wipro said it would buy Alight HR Services India Pvt Ltd, which is Alight Solutions' captive operations in India.

The deal is expected to be completed in the quarter ending September.

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The company's earnings per share (EPS) for the quarter stood at Rs 4.71 ($0.071) per share, an increase of 9.9 per cent year-on-year. 

Wipro share price settled at Rs 283.05, down 0.7 per cent on the BSE today.