Wipro on Thursday surpassed analyst estimates to clock a 35.2 per cent growth in net profits for the quarter ended June 2021 gaining from strong demand amid the pandemic. The Bangalore-based company posted a net profit of Rs 3,232.10 crore during the period compared with Rs 2,390.20 crore in the same quarter of the previous year.
Brokerages had expected the IT services firm to report net profits in the region of Rs 2,700-2,900 crore.
Revenues for the quarter far exceeded the guidance made in April.
Wipro had forecast revenues from its IT services business to be in the range of $2,195-2,238 million during the April-June quarter, which translated into a sequential growth of 2-4 per cent. On Thursday, it reported IT services revenues of $2,414.5 million, an increase of 12.2 per cent over the preceding three months and a 25.7 per cent jump over the year-ago period.
For the quarter ended September 30, Wipro now expects the IT services business revenue to be in the range of $2,535-2,583 million, a sequential growth of 5-7 per cent.
In rupee terms, its gross revenues came in at Rs 18,250 crore, an increase of 12.4 per cent over the previous quarter and a rise of 22.4 per cent over the same period of 2020-21.
Thierry Delaporte, CEO and managing director of Wipro, said revenue growth on a constant currency basis during the April-June period was the best in 38 quarters.
“The demand environment is robust and the overall pipeline is better than before. We continued to increase our participation in deals in the marketplace and there was a good mix of large, medium sized and smaller deals. In terms of the underlying performance, the numbers show significant traction across all markets,” he said.
Wipro disclosed that during the period, it closed eight large deals, resulting in a total contract value of over $715 million.
The banking, financial services & insurance (BFSI) segment showed a growth (in constant currency) of 31.3 per cent over the same period of the previous year.while manufacturing and communications rose 5 per cent and 19 per cent, respectively.