Wipro net up just 1.2% in Q1, caution ahead

India's third largest software services exporter, Wirpo Ltd, on Wednesday reported a 1.2% year-on-year growth in profit for the April-June period in line with what the market was expecting. HT reports.

India's third largest software services exporter, Wirpo Ltd, on Wednesday reported a 1.2% year-on-year growth in profit for the April-June period in line with what the market was expecting. It benefited from clients in developed markets especially Europe increasing their reliance on outsourcing to cut costs and boost efficiency.

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The consolidated net profit rose to Rs 1,334.9 crore during the quarter from R1318.6 crore a year ago, while its revenues grew by 18.3% to Rs 8,564 crore.

"We are seeing early signs of positive momentum after the re-organisation," said Azim Premji, chairman, Wipro Ltd.

For the current quarter, Wipro maintained a cautious outlook with a guidance of $1.4-1.5 billion (Rs 6,480-6,570 crore) as revenue from its IT services business, a 2.1-3.5% growth over the April-June quarter.

"The wage revision of around 10-12% last month and 3.1% higher effective tax rate had a sequantial impact on the results," said Suresh Senapaty, chief financial officer, Wipro.