On Tuesday, top IT services provider Wipro profit in the first financial quarter was at ₹2,390 crores. However, the gross revenue was ₹14,913 crores which is 1.3% higher than before. The company’s consolidated revenue was ₹14,716 crores. It crossed the analyst estimates.
The company’s IT services EBIT margin escalated to 19.1% which was 18.4% in June 2019 and 17.6% in the previous quarter.
From foreign exchange fluctuations, the IT giant has improved operational performances and gains. However, during the first three months of the fiscal year, the COVID-19 pandemic made the IT services segment drop its revenue to $1.91 billion which is 5.7%.
The total income of Wipro was ₹15,571 crores in the April-June quarter and at ₹15,566.6 crores in the same quarter of the last financial year.
42 new customers were added to the company’s IT services area in the June quarter and the total number of clients became 181,804 by the end of the month.
Officials from the giant told that due to the current COVID-19 crisis has curtailed its spending on technology, which has affected demands for the products and customer spending. It could also change customers’ buying capacity, on-site consultation services, and reduce the promptness of the service delivery. This, in turn, will impact our future sales, operations results, and net financial performance.
The organization has suspended any forecast related to its second financial quarter. Thierry Delaporte, CEO of Wipro told the reporters that the pandemic is still under an unstable situation and any estimates for the second financial quarter should have a solid ground.
Profitable growth is the most vital point in Delaporte’s agenda. He is much confident about delivering long term, sustainable growth in the interest of the stakeholders of the company.
Wipro stands firm in Latin America with its expansions in countries-Brazil, Mexico, Chile, Colombia & Costa Rica. The company also announced that it will acquire IVIA Servicos de Informatica, a Brazilian IT services firm, for $22.4 million. This acquisition will provide a foundation to set up delivery centers in the north-eastern region of Brazil and will get completed by the end of September, 2020.
Rashid Premji, Chairman, Wipro told that the company has no plans for lay-offs due to the COVID-19 impact. He said so at the 74th Annual General Meeting(AGM) of the company, that they are doing cost reductions by various other means. Employees safety and well-being is of paramount importance to the corp.
In March, the company validated work from home for 93% of their employees across the world. Delaporte, is trying its best to drive a high-performance culture while holding their cherished values.