Chennai, NFAPost: IT Services Company Wipro on Tuesday posted its consolidated net profit for the first quarter of this financial year at Rs 2,390 crore. Its net profit was flat as the company posted Rs 2,387 crore in the year-ago period.
The IT Company’s revenue stood at Rs 14,913 crore, a marginal increase of 1.3%, compared to Rs 14,716 crore in the corresponding quarter of the last year.
Its IT Products Segment revenue for the quarter stood at Rs 230 crore. Wipro’s consolidated IT services revenue during the quarter stood at Rs 14,596 crore, compared with Rs 14,351 crore in the correponding quarter of the previous fiscal.
The company’s Net Income for the quarter was Rs 2,390 crore, an increase of 0.1% YoY. Its Earnings per share for the quarter was at Rs 4.20, an increase of 5.7% YoY.
“I am deeply honoured to lead Wipro, an extraordinary company and an exemplary corporate citizen with a deep technology heritage built on a strong foundation of values. I have great respect for the work done by the Azim Premji Foundation, its 67% economic ownership of Wipro adds greater meaning to what we do. Profitable growth will be the most important priority on my agenda. I am confident that we will be able to deliver longterm, sustainable growth in the interest of all our stakeholders,” Wipro CEO and Managing Director Thierry Delaporte said.
Wipro has been awarded a strategic, multi-year infrastructure modernization and digital transformation services engagement by Germany-based energy company E.ON. Wipro will transform E.ON’s legacy data center operations to a hybrid cloud model by leveraging its strong energy value chain expertise in a prosumer driven world, Boundary Less Enterprise (BLE) framework and Wipro HOLMES.
Wipro’s consumption-based hybrid cloud hosting strategy will ensure a superior and secure customer environment spanning Perimeter & Endpoint security, threat detection & response, and Privileged Access Management (PAM), the company said.
Wipro has won a strategic multi-year engagement with a leading global investment management firm to transform and manage its entire technology development services and infrastructure. The scope includes applications development and maintenance, quality engineering services, and infrastructure services comprising datacenter operations, networks, and service desk support.
This contract adds to the operations engagement that the customer awarded Wipro last year.
“We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation. We also continued to sustain robust cash generation with Operating Cash Flows at 174.9% of Net income,” said Wipro CFO Jatin Dalal.
In a stock exchange filing, Wipro said, “The conditions caused by the COVID-19 pandemic could decrease technology spending, adversely affect demand for our products, affect the rate of customer spending and could adversely affect our customers’ ability or willingness to purchase our offerings, delay prospective customers’ purchasing decisions, adversely impact our ability to provide on-site consulting services and our inability to deliver our customers or delay the provisioning of our offerings, all of which could adversely affect our future sales, operating results and overall financial performance. Our operations may also be negatively affected by a range of external factors related to the COVID-19 pandemic that are not within our control.”
Wipro to acquire IVIA Serviços de Informática Ltda
The company also said that it has signed an agreement to acquire Brazil-based IVIA Serviços de Informática Ltda. IVIA is headquartered in the Northeast of Brazil, with offices in Fortaleza-Ceará, Recife-Pernambuco and Natal-Rio Grande do Norte. Founded in 1996, IVIA provides IT solutions including system development, maintenance, consulting and project management services to clients in different sectors such as Financial Services, Transportation, Retail, Healthcare, Consumer Goods and Manufacturing in Brazil.
Wipro has a significant presence in Latin America with offices across five countries in the region – Brazil, Mexico, Chile, Colombia and Costa Rica. In Brazil, Wipro has a vision to grow the operations by bringing the best of its global experience to the local market and becoming a partner of choice as an end-to-end IT services provider. This acquisition is another significant step towards Wipro’s commitment to this region.
“We welcome employees of IVIA to the Wipro family. They bring with them unique strengths and experience that will be of immense benefit to Wipro. We continue to make strategic investments in this region and this acquisition will help Wipro address the needs of clients across multiple verticals. Wipro’s digital capabilities combined with IVIA’s strengths will maximize benefits for clients,” said Wipro Limited Vice President and Head of LATAM Mukund Seetharaman.
Welcoming the acquisition, IVIA Serviços de Informática Ltda Founder and Chief Marketing Officer Alexandre Menezes said, “We are excited about what Wipro and IVIA can deliver jointly to clients, transform communities and leverage information technology to empower people. Wipro’s fast-growing presence in the region, digital transformation capabilities, its global customer portfolio and delivery model will help our talent and customers immensely.”
The acquisition is subject to customary closing conditions and is likely to be completed in the quarter ending September 30, the company said.
