Mumbai–Wipro reported a 4.7% sequential decline in first-quarter profit and forecast flat to weaker IT services revenue for the current quarter.
The technology services company’s consolidated net profit fell to 3,352 crore rupees in the April-to-June quarter from the previous quarter. Profit was largely unchanged from a year earlier.
Gross revenue rose 1% sequentially and 10.6% year over year to 24,480 crore rupees.
Wipro’s IT services operating margin narrowed to 16%, down 1.3 percentage points from the previous quarter and 1.2 percentage points from a year earlier.
Operating cash flow increased 3.6% sequentially to 3,290 crore rupees, representing 98% of the company’s net income during the quarter.
The company’s voluntary employee attrition rate stood at 13.9% on a trailing 12-month basis.
For the second quarter, Wipro expects IT services revenue to range from a decline of 1.5% to growth of 0.5%.
“Clients are moving beyond technology modernisation to AI-enabled operating models that improve quality, resilience, and productivity,” said Srini Pallia, CEO and Managing Director.
“Wipro’s consulting-led, AI-powered approach helps clients embed AI at the core of their business, and these engagements reflect both the breadth of our capabilities and the trust clients place in us as a transformation partner,” Pallia added.
Wipro’s board also declared an interim dividend of 2 rupees per share.
Shares of Wipro closed 1.83% higher at 177.80 rupees on the BSE. The stock has declined 33.56% over the past six months, 32.38% over the past year and 38.49% over the past five years. (Source: IANS)
