Wipro net dips 3.7% in Q1

The operating profit margins continued to decline to 21 per cent even in Q1 against 22 per cent in the comparable sequential period, impacted by wage hikes and currency movement. In US dollar terms, the IT services business reported a revenue of $1,794.1 million, a 1 per cent sequential rise — a performance in line with its guidance. For Q2, Wipro has projected the IT services revenue to grow 1.5-3.5 per cent, translating into $1,821-1,857 million. Wipro CEO TK Kurien said, “Overall, while we are seeing a stable demand environment, there is a pressure on pricing in new deals. We see a pick up in momentum in Q2 as reflected in our guidance and we expect H2 to be better than H1.”

Wipro continued its investments in start-ups and announced that it has picked up minority stakes in two US-based technology firms — Talena and Vicarious.  Wipro announced its results after market hours on Thursday. The Wipro scrip closed at Rs 588.40, up 0.52 per cent, on the BSE.