Wipro posts strong Q1FY22 numbers despite Covid concerns, IT services growth expected 5-7% in Q2 – check key financials from quarterly results

The information and technology heavyweight — Wipro on Thursday reported strong first-quarter numbers despite the second covid wave, with an expectation that its revenue from IT services business will grow by 5 to 7 per cent in the September-ended quarter of the financial year 2021-2022.

The gross revenue of Wipro in terms of rupees surged 12.4 per cent quarter-on-quarter, while it jumped 22.4 per cent year-on-year to Rs 18252.4 crore, while its IT Services segment revenue stood at $2,414.5 million, up of 12.2 per cent QoQ and 25.7 per cent on a YoY basis in Q1 of FY21.

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The third-largest IT company’s IT Services operating margin decreased 29 basis points (bps) on a YoY basis in the June-ended quarter of FY21 at 18.8 per cent. While its net income for the quarter jumped by over 35 per cent on a YoY basis to Rs ₹3230 crores in the first quarter of FY22.

Wipro reported operating cash flow at Rs 3350 crore, which is 103.7 per cent of the net income, the company said in its financial results released on Thursday, adding that the IT Services workforce crossed the milestone of 200K, closing headcount at 209,890.

Wipro in its filing to exchanges said, “In June 2021, we issued our first-ever dollar-denominated bond offering of $750 million with a 5-year tenor.” It also pointed out that the company’s non-GAAP2 constant currency IT Services segment revenue grew by 12 per cent QoQ and 21.3 per cent YoY.

The company also said, “We expect Revenue from our IT Services business to be in the range of $2,535 to $2,583million. This translates to a sequential growth of 5 to 7 per cent.”

In a management commentary, Wipro Chief Executive Officer and Managing Director Thierry Delaporte said, “We delivered our best-ever quarter, with secular growth across all SMUs, Sectors, and GBLs despite a severe onslaught of the pandemic. Our sequential revenue growth of 12.2 per cent was well ahead of the top-end of our guidance range, both organically and with Capco.”

Ahead of Q1 results, the shares of Wipro touched a new 52-week high on Thursday, after rallying for over 3 per cent on the BSE intraday today. However, the stock closed almost 2.5 per cent higher to Rs 575.75 per share as compared to a 0.48 per cent rise in the BSE Sensex today.