Information technology (IT) major Wipro saw its net profit decline to Rs 2,930 crore in the second quarter of 2021-22 from Rs 3,242 crore in the June quarter of the current fiscal.
The quarterly decline was primarily due to a contraction in the company’s margins after impacting pay increases and amortization charges on the Capco acquisition.
Wipro had acquired London-based The Capital Markets Company (CAPCO) in April 2021 for $1.45 billion. Capco is a consulting firm in the banking and financial services sector.
Revenue from IT services rose to Rs 19,760 crore in the September quarter as against Rs 18,252.4 crore in the previous quarter.
Commenting on the results, Thierry Delaporte, CEO and Managing Director, Wipro said, “The Q2 results show that our business strategy is working well. We grew organic sequential growth of over 4.5 percent for the second quarter in a row, resulting in 28 percent year-on-year growth in the first half of this fiscal year. I thank our customers, partners and associates as we passed the $10 billion milestone of annual revenue run rate. “
Wipro is the third largest IT services company in the country in terms of market capitalization.