Wipro Q1FY19 results beat estimates: Key highlights

Wipro, country's third largest Information technology services provider, reported 16.3 per cent sequential jump in its net profit at Rs 2,094 crore for the June quarter, beating Street estimates. The IT giant 

The company's consolidated revenue grew 3.4 per cent to Rs 14,231 crore. Earnings before interest and tax rose 19.7 per cent quarter-on-quarter to Rs 2,254 crore, while EBIT margin expanded to 15.8 per cent from 13.7 per cent quarter-on-quarter.

Wipro share price settled 0.7 per cent lower as compared to a 1.5 per cent gain in the Nifty IT Index. 

Here are key highlights:

• Gross Revenue was Rs 139.8 billion ($2.0 billion1), up 1.5 per cent sequentially and 2.6 per cent YoY.
• IT Services Segment Revenue at Rs 137.0 billion ($2.0 billion1), up 2.2 per cent sequentially and 5.2 per cent YoY.
• IT Services Segment Revenue in dollar terms at $2,026.5 million, down 1.7 per cent sequentially, up 2.8 per cent YoY.
• Non-GAAP constant currency IT Services Segment Revenue up 0.1 per cent sequentially and 2.4 per cent YoY.
• IT Services Margin2 for the quarter at 17.2 per cent. This includes a gain of Rs 2,529 million ($36.9 million1) from the sale of our hosted data center business in the quarter ended June 30, 2018.
• EPS for the quarter at Rs 4.71 ($0.071) per share, an increase of 9.9 per cent YoY. 

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Outlook for the September quarter:

The company expects revenue from IT Services business to be in the range of $2,009 million to $2,049 million. This translates to a sequential growth of 0.3 per cent to 2.3 per cent, excluding the impact of the divestment of their hosted data center services business which concluded in the quarter ended June 30, 2018.