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.

Indian IT giant Wipro's profit grew by a marginal 1.9% to $384 million over the last quarter accompanied by an increase in gross revenue of 2.3%. In comparison, Infosys’ growth was relatively muted at 1%.

However, on a yearly basis, the company’s operating profits have fallen by 5%.

IT 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%.

Wipro growth this quarter

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.

See also:
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