Wipro Q1 profit up 30% Y-onY

India’s third-largest software-services exporter Wipro on Thursday posted a 5.8 percent sequential decline in net profit to Rs 2,100 crore during the April-June stretch largely hit by salary hikes during the quarter. The company recorded a profit of Rs 2,230 crore in the preceding March quarter.  For the Bangalore-based IT firm year-on-year profit was up 30 percent backed by foreign exchange gains during the first quarter of the current fiscal. Wipro recorded a forex gain of Rs 109.8 crore during the June quarter compared to Rs 5.2 crore in the same period last year.  

During the June quarter, Wipro doled out an average wage hike of 8 percent for its employees in India, while for overseas was 2 percent effective June 1. For the April-June period the IT-services company reported a sequential dollar-revenue growth of 1.2 percent at $1,740.2 million as against $1,720.2 million for the quarter ended March.

Year-on-year dollar revenue was up 9.6 percent backed by surge in outsourcing demand. Wipro’s dollar revenue growth was in line with estimates as analysts tracking the sector projected the IT major to post sequential dollar revenue growth in the range of 1-1.5 percent. However, Wipro’s revenue growth lagged behind its larger rivals TCS and Infosys, which recorded a growth of 5.5 percent and 2 percent respectively during the same period.