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Wipro Shares Jump 14.5% After Q1 Financial Results

Olga Robert
·1-min read

On Wednesday, shares of Wipro Limited jumped 14.57 percent to Rs 257.80 after it reported operationally strong quarterly results despite an almost flat rise in net profits for the April-June period.

On Tuesday, after market hours, the IT services company posted a rise in consolidated profit by 2.8 percent to Rs 2,390.4 crore for the June-ended quarter, when compared to the previous quarter. Its revenue fell 5.3 percent against the March quarter to Rs 14,922 crore.

Wipro's IT services saw a 4.6 percent sequential decline in revenue at Rs 14,595.6 crore due to lockdown in several countries due to COVID-19 but showed good growth in operating income.

IT services' earnings before interest and tax (EBIT) was up 3.3 percent to Rs 2,782.2 crore in the April-June period, and margin rose 14.6% from the previous quarter to 19.06 percent.

"We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation. We also continued to sustain robust cash generation with operating cash flows at 174.9 percent of net income," said Jatin Dalal, Wipro's Chief Financial Officer.

The company also said that it will be acquiring IVIA Servigos de Informatica, a Brazilian IT solutions provider, for $22.4 million. The transaction is likely to be completed in the curent quarter ending 30 September 2020.

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