Despite Pandemic, Wipro Earned Rs 107 Crore/Day In Last 90 Days; Posts Best Ever Profits At 35% Hike

IT services company Wipro reported a 35% year-on-year jump in consolidated net profit to Rs 3,230 crore for the quarter ended June 30, 2021, reflecting strong demand for India’s outsourcing service providers. 

The Numbers

The firm expects revenues from its IT services business to be in the range of $2,535 million to $2,583 million for the quarter ending September 30, 2021, a growth of 5%.

Its Q1 numbers were ahead of market estimates which had expected consolidated net profit of Rs 2,854 crore.

In constant currency terms, revenues grew to $2.41 billion, a jump of 12% sequentially.

Capco Acquisition

Wipro CEO Thierry Delaporte said that despite the unforgiving pandemic, the firm delivered its “best-ever quarter, with secular growth across all SMUs, Sectors and GBLs. [Its] sequential revenue growth of 12.2% was well ahead of the top-end of [its] guidance range, both organically and with Capco. Though in the early days yet, [we are] pleased with the way we have collaborated with Capco to build our joint go-to-market offerings and strategy.”

Capco is a British management and technology consultancy which Wipro acquired for $1.45 billion in March.

The acquisition is a strategy to strengthen its position in the banking, financial services, and insurance (BFSI) sector, which contributes about 30% to the company’s total revenues.

Workforce Increases

Wipro said that its net workforce increased by over 12,150 in the June quarter.

Its IT services workforce crossed the milestone of 200,000, closing headcount at 209,890.

Ampion Acquisition

The company is also working towards buying out Ampion, an Australia-based cybersecurity, DevOps and quality engineering services provider company.

The transaction is expected to conclude in the September quarter as some regulatory approvals are still pending.

Competitor Performance

Competition including Infosys raised its annual revenue forecast as it won more contracts from global businesses expanding their digital offerings.

This hike is following a strong first quarter in which its profit jumped 22.7%, mirroring upbeat results from bigger rival Tata Consultancy Services.

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