Information Technology (IT) major Wipro witnessed a fall in its net profit for the second quarter of 2021-22, which at Rs 2,930 crore was lower than Rs 3,242 crore of the June quarter of the current fiscal.
The quarter on quarter fall was mainly due to contraction in the company’s margins after effecting a wage hike and ammortisation charges on Capco’s acquisition.
Wipro had wrapped up the acquisition of London-based The Capital Markets Company (Capco) for $1.45 billion in April 2021. Capco is a consultancy firm in the banking and financial services sector.
Revenues from IT services increased to Rs 19,760 crore in the September quarter, vis-à-vis that of Rs 18,252.4 crore recorded in the previous quarter.
Commenting on the results, Wipro’s CEO and Managing Director Thierry Delaporte said, “the second quarter results demonstrate that our business strategy is working well. We grew at over 4. 5 per cent organic sequential growth for a second quarter in a row, resulting in a 28 per cent year on year growth in the first half of this financial year. I thank our customers, partners and colleagues as we surpassed the $10 billion milestone of annualised revenue run rate.”
In terms of market capitalisation, Wipro is the third largest IT services company in the country.