Wipro Q1 profit jumps 12.6 pc to Rs 2,388 crore

IT services major Wipro said on Wednesday that good demand from key financial clients boosted its first-quarter profit to Rs 2,388 crore, up 12.6 per cent from Rs 2,121 crore in the corresponding quarter of last year.

The consolidated revenue stood at Rs 14,716 crore as against Rs 13,978 crore in the same period, marking an increase of 5.3 per cent.

Wipro reported 13.5 per cent growth in its banking, financial services, and insurance business despite events like Brexit and the ongoing trade tussle between the United States and China.

"Our efforts on client mining have resulted in an addition of three customers in more than 100 million dollar bucket," said company's CEO and Executive Director Abidali Z Neemuchwala.

"We will continue to build differentiated capabilities to drive business transformation for our customers by investing in our big bets."

Chief Financial Officer Jatin Dalal said: "We delivered IT services margins of 18.4 per cent and free cash flows of 98.8 per cent of our net income. We had a slower start to the year. However, we remain focused on our operations and continue to invest in talent and capabilities for the future."

Meanwhile, Wipro had previously announced a buyback proposal for purchase of up to 323.1 million equity shares of Rs 2 each from the shareholders on a proportionate basis by way of a tender offer at a price of Rs 325 per equity share payable in cash for an aggregate amount not exceeding Rs 10,500 crore.

"After receipt of shareholders' approval, the company has filed the draft letter of offer for the buyback with SEBI. Upon receipt of approval from SEBI, we will complete the buyback process," it said in a statement.