Wipro's profit and margin fall even as its digital business grows
- Wipro posted a growth of 2.3% over the last quarter in dollar terms.
- Most of its revenue growth came from banking, financial services and insurance (BFSI).
- The firm has also benefited from the rupee’s depreciation as over half of its revenue came from the Americas.
However, on a yearly basis, the company’s operating profits have fallen by 5%.
AdvertisementIT services performed consistently growing by 2.2% to hit $2.1 billion.
Nearly one-third of the revenue from IT services came from its banking, financial services and insurance (BFSI) products. However, its growth over the last quarter was flat.
Wipro’s operating margin grew by a minuscule 0.3% on a quarter-on-quarter basis. On an annual basis, it declined by 1.4%.
More than half of the company’s revenue came from the US, where the rupee’s depreciation could have played a small part. But it’s overall contribution fell by 0.4%.
According to the company, its main momentum came from adding four new large deals to its portfolio— including a multi-year contract from a leading airport in the Middle East, a large strategic deal in Europe, and a strategic multi-year deal with Olympus.
Deals continued to gain traction for the company’s digital sector with heightened demand for cloud-based services and infrastructure upgrades.
Digital now comprises 39.8% of Wipro’s business, growing by 22.8% year-on-year.
Over the last quarter, Wipro added 5,865 employees to its roster — nearly 2,000 of whom were freshers.
Before the earnings were announced, Wipro’s stock went up by 0.8% to ₹257, as per BSE data.
Infosys has raised full-year growth guidance— the stock market was a step ahead of it
IndusInd Bank stock falls 3.9% as its net profit grows by 33%
US - Iran tensions strengthen dollar giving boost to Indian tech stocks
Popular on BI
- Realme GT Neo 2 5G review: Great performance, fine display but camera needs work
- Cryptocurrency investment 101 — here’s how to do your own research (DYOR) and invest in the right digital asset
- Elon Musk’s puppy, a new strategy to burn tokens, and altcoins playing catch up — the perfect storm for cryptocurrency Shiba Inu to skyrocket
- India's farmers protest takes a gruesome turn with a chilling murder at the scene — here’s the sequence of events
- Bizarre! Shubhman Gill was brought back to bat after being declared out
- Ruturaj Gaikwad and Faf du Plessis — amazing data on how the two openers led CSK to IPL 2021 championship
- Budget and safety top criteria for Chennai households during festive season:LocalCircles
- Electric bus makers on a roll as states like Maharashtra and Karnataka send in large orders