Wipro management pins hope on wider margin and new clients while revenue takes a dip
- Wipro's share price is up by 16% on Wednesday, morning after the Indian IT giant reported its Q1FY21 results.
- Wipro's revenue took a massive dip of 5.3% in Q1Fy21 as compared to the preview quarter.
- The company’s profit was up by 2.1% quarter on quarter.
- It has 42 new customers but most its revenue this quarter came from existing clients
AdvertisementWipro’s revenue plummeted by 5.3% in its first quarter of 2020-21 but its profits were up by 2.1% quarter-on-quarter (QoQ). “We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation,” said Wipro’s Chief Financial Officer (CFO), Jatin Dalal.
Wipro's stock price was up by 16% during the morning trade on Wednesday, after the company announced its Q1FY21 results.
A fact that played a factors in both profits and margins was foreign exchange. A weaker rupee helps Indian IT services companies because since they export most of their services, and so their billing is in dollars. "We have a taken a larger provision which is more call led, as per expected credit loss, which is driven by the environment not led by a specific situation or specific customer — or any specifics for that matter," Wipro's management told analysts during the earnings call.
"The view is clearly to shoot for stabilisation of the revenue of the top line in the second quarter.," said Wipro CEO Theirry Delaporte during the earnings call.
The company has added 42 new customers to its docket, including 13 which are larger than $100 million including the John Lewis Partnership in the UK. It also entered into a strategic multi-year deal with Germany’s E.ON energy company. However, most of its revenue — 99.7% — comes from existing clients.
With respect to hiring, Wipro plans to continue adding new employees to its roster in the coming quarter. “Lateral hiring never stopped. This quarter Wipro has hired 7,000 people gross and we’ve hired across the globe, wherever there was demand,” said Wipro's Chief Human Resources Officer, Saurabh Govil.
Wipro share price 16% increase leads to surge in Infosys share price too
After last quarter’s massive dip, Wipro adds 7,000 employees with plans to continue hiring in Q2
TCS revenue dips by 6.3% — CEO says nearly all verticals were hit by COVID-19 crisis
Popular on BI
- OpenAI CEO Sam Altman is privately reassuring developers using the company's tech that it won't compete with them beyond ChatGPT
- The crowd at the unveiling of Apple's Vision Pro headset let out a collective groan when they found out how wildly expensive it was
- My twin and I were in separate classrooms in school. Our joint math lesson made me realize how silly that was.
- Workplace toxicity is common but not enough gets recorded, say HR veterans
- Sensex, Nifty50 likely to open on a tepid note amid mixed global cues: Adani group, Torrent Power, Mazagon Dock among stocks to watch
- These midcap stocks can be the next multibaggers, according to Goldman Sachs
- Auto and BFSI seen driving India Inc’s earnings growth this financial year
- Indian and Chinese households top the global food wastage list