Wipro Q1 profit falls 4.3 pc, forecasts flat to weak Q2 IT services revenue
Mumbai, July 17
IT major Wipro on Thursday reported a decline in its net profit for the first quarter of FY27, with consolidated PAT declining over 4 per cent sequentially despite a marginal rise in revenue.
The company's consolidated net profit declined 4.7 per cent quarter-on-quarter (QoQ) to Rs 3,352 crore in the April-June quarter, although PAT was flat from a year ago.
Meanwhile, gross revenue rose 1 per cent sequentially and 10.6 per cent year-on-year (YoY) to Rs 24,480 crore.
At the operating level, IT services' operating margin stood at 16 per cent during the quarter, down 1.3 percentage points sequentially and 1.2 percentage points year-on-year.
Operating cash flow rose 3.6 per cent sequentially to Rs 3,290 crore and accounted for 98 per cent of the company's net income during the quarter.
The company's voluntary attrition rate stood at 13.9 per cent on a trailing 12-month basis.
Looking ahead, Wipro expects revenue from its IT services business to be in the range of a 1.5 per cent decline to growth of 0.5 per cent.
According to Srini Pallia, CEO and Managing Director, "Clients are moving beyond technology modernisation to AI-enabled operating models that improve quality, resilience, and productivity.
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.
Apart from earnings, the board also declared an interim dividend of Rs 2 per equity share.
Shares of Wipro on Thursday ended at Rs 177.80, an increase of 1.83 per cent on the BSE.
The IT stock has declined 33.56 per cent in the last six months and 32.38 per cent over the past year. It plunged by 38.49 per cent over the last five years.
— IANS
Reader Comments
The 13.9% attrition rate is actually quite good compared to industry average. But the guidance of -1.5% to +0.5% for next quarter is very weak. Seems like clients are still cautious on spending. At least dividend of Rs 2 per share gives some return for long-term holders. 📉
Genuine question: why does Wipro always underperform TCS and Infosys? Even during good times, their margins lag. Srini Pallia talks about AI consulting but ground reality is different. Met few Wipro folks at a startup event, they seemed clueless about AI. Need serious strategy overhaul. 🤔
As someone who works in the US IT sector, the whole Indian IT story is getting concerning. Clients here are pushing for more onshore presence, AI automation is reducing need for large offshore teams. Wipro's flat guidance might be the new normal for Indian IT. They need to pivot fast.
Stock down 38% in 5 years! That's worse than many midcaps. Wipro needs to fix its core business instead of hiring expensive consulting firms for 'transformation'. Just deliver on time, retain talent, and execute basic IT services. Sometimes the simple things matter most in this industry. 🎯
Disappointed with the margin drop. 16% is below what I expected. The CEO's comment about AI is corporate speak - I want to see actual AI contracts and revenue from those services. Guessing the next quarter will be more of the same sideways movement. Wipro feels like a value trap.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.