IT major Wipro Ltd on Wednesday posted a 12.5%rise in consolidated net profit at Rs 2,387.6 crore for the April-June quarter, and guided for up to 2% sequential revenue growth for the July-September period.
Its revenue increased by about 5.3% to Rs 14,716.1 crore during the reported quarter, compared to Rs 13,977.7 crore in the year-ago period. The Bengaluru-based company’s consolidated income rose by about 5% to Rs 15,566.6 crore during the reported quarter.
Wipro’s mainstay IT services revenue was USD 2,038.8 million, up 4.3% year-on-year. The company, which competes with rivals like Tata Consultancy Services and Infosys, had earlier said its IT services revenues in June 2019 quarter are likely to be in the range of USD 2,046 million to USD 2,087 million, excluding the impact of the divestment of its Workday and Cornerstone On Demand business.
For the July-September quarter, Wipro expects its IT services revenue to be in the range of USD 2,039 million to USD 2,080 million — translating into a sequential growth of up to 2%.
“We delivered IT services margins of 18.4% and free cash flows of 98.8% of our net income. We had a slower start to the year, we however remain focused on our operations and continue to invest in talent and capabilities for the future,” Wipro Chief Financial Officer Jatin Dalal said.
Wipro saw a sequential drop of 3.8% in net profit from Rs 2,483.5 crore in March 2019 quarter, while revenue dropped 1.9% from Rs 15,006.3 crore in the previous quarter.
“Our efforts on client mining have resulted in an addition of three customers in more than USD 100 million bucket. We will continue to build differentiated capabilities to drive business transformation for our customers by investing in our big bets,” Wipro CEO and Executive Director Abidali Z Neemuchwala said.
Wipro’s topline numbers lag behind those of larger rivals TCS and Infosys that announced their first quarter performance last week. TCS logged a revenue growth of 11.4% to Rs 38,172 crore during the June quarter, while Infosys saw its topline rising 14% to Rs 21,803 crore.
HCL Technologies, which overtook Wipro to become the third largest Indian IT services company, is yet to announce its quarterly results.
Wipro’s earnings per share (EPS) for the June quarter was at Rs 3.97 per share, up 12.5% from the previous year.
The company said it would complete its previously announced Rs 10,500 crore buyback proposal of up to 323.1 million equity shares (at a price of Rs 325 apiece) after receiving approval from market regulator SEBI.
Wipro’s IT products segment reported revenue of Rs 240 crore, while that of its India state-run enterprises (SRE) segment was about Rs 210 crore.
Yes Bank Q1 net profit slumps over 92%
Private sector Yes Bank on Wednesday reported a slump of over 92.4% in its consolidated net profit to Rs 95.56 crore in the first quarter ended June this fiscal. The bank had reported a net profit of Rs 1,265.67 crore in the April-June quarter of the previous fiscal ended March 2018. Sequentially, the private sector lender had posted first ever loss of Rs 1,508.44 crore in the quarter ended March, 2019 due to mounting bad loans.
Total income (consolidated) increased to Rs 9,105.79 crore in three months to June of 2019-20, up from Rs 8,301.06 crore in the same quarter of 2018-19, the bank said in regulatory filing. On standalone basis, the bank’s net profit stood at Rs 113.76 crore in April-June period this fiscal, down by 91% from Rs 1,260.36 crore a year ago.
Income (standalone) increased to Rs 9,088.80 crore during the first quarter, as against Rs 8,272.18 crore in the same period previous fiscal. In terms of asset quality, the gross non-performing assets (NPAs) of the bank swelled to 5.01% of the gross advances at June-end this year, compared to 1.31% in June 2018. The net NPAs rose to 2.91% from 0.59% a year ago.
In value terms, the gross NPAs or bad loans were at Rs 12,091.10 crore at June-end this year, up from Rs 2,824.46 crore. The net NPAs stood at Rs 6,883.27 crore, compared to Rs 1,262.57 crore.
Mindtree Q1 net up
Mid-sized IT firm Mindtree on Wednesday posted a 41.4% rise in consolidated net profit to Rs 92.7 crore for the quarter ended June 30. The Bengaluru-based firm had registered a net profit of Rs 158.2 crore in the year-ago period, it said in a statement. Mindtree’s revenues rose 11.9% to Rs 1,834.2 crore in the quarter.