Salary Hiked For 80% Wipro Employees; Rs 32 Crore Profit Earned/Day By Wipro In 90 Days

Indian IT major, Wipro reported a consolidated net profit of Rs 2,930.7 crore for the quarter ended September 2021 on October 13.

Wage Hike Affecting Profit

This is actually a decline of 9.6 percent for the country’s third-largest IT services company by market capitalization.

It seems to be caused due to the contraction in margins after wage hike and amortization charge on Capco acquisition. 

It is noteworthy here that the IT firm’s profit grew by 18.9 percent compared to the corresponding quarter last fiscal.

This translates to a gross revenue increased 7.8 percent sequentially to Rs 19,760.7 crore during the period, and 30.1 percent year-on-year (YoY).

The numbers for Wipro stood at  $2,580 million for the September quarter, increasing 6.9 percent QoQ while the YoY growth was 29.5 percent. 

Exceptional Revenue Growth

Coming to the revenue growth,  it was 8.1 percent sequentially in constant currency.

The number seems to be far ahead of analysts’ estimates of 6.5-7.4 percent. While YoY basis, it grew by 28.8 percent.

The CEO and Managing Director Wipro, Thierry Delaporte said, “The Q2 results demonstrate that the business strategy is working well. We grew at over 4.5 percent organic sequential growth for a second quarter in a row, resulting in a 28 percent YoY growth in the first half of this financial year,”.

Further adding that Wipro has surpassed the $10 billion milestones of annualized revenue run rate.

Milestones For Future

Coming to Q3FY22, the IT firm expects revenue from the IT services business to be in the range of $2,631 million to $2,683 million at a sequential growth of 2 percent to 4 percent.

In terms of IT services operating margin for the September 2021 quarter, it was at 17.8 percent.

Which is a decline of 104 bps as compared to the previous quarter, and fell 140 bps YoY.

The Chief Financial Officer, Jatin Dalal said, “We sustained operating margins in Q2 in a narrow band even after absorbing the full impact of recent acquisitions and investing significantly in business across sales, capabilities, and talent,”.

Prior to this, Wipro completed a salary increase covering 80 percent of colleagues, making it the second hike in this calendar, Dalal said.