Wipro Q1 Results: Net profit of 2870 crores to the company, Wipro will invest heavily in AI

IT company Wipro today i.e. on July 13, announced a 12 per cent year-on-year increase in consolidated net profit at Rs 2,870 crore for the June quarter. However, the company missed analysts' estimates.
Reduction in discretionary spending by customers has impacted its financial performance. Wipro witnessed "robust deal closures" in the first quarter of this fiscal and in terms of total contract value, the company closed large deal bookings at USD 1.2 billion, up 9 percent year-on-year.
Wipro CEO and Managing Director Thierry Delaporte said during an earnings conference call, "All around us, in almost every industry, businesses are reducing discretionary spending in response to the weak macro environment. This has had an impact on our revenues as well. " The Bengaluru-headquartered IT services company reported a 12 percent rise in its consolidated net profit to around Rs 2,870 crore for the June quarter.
However, if seen sequentially, the company's net profit was lower by 6.6 percent as compared to the March quarter. At the same time, Wipro's income from operations increased by 6 percent to Rs 22,831 crore in the three months ended June.
The company has managed better-operating margins by improving production, utilizing talent, and managing fixed costs. "This quarter, we closed our largest buyback ever, allowing us to return US$1.5 billion to our shareholders," he added.
The company's employee strength has come down by 8,812 in the June quarter as compared to the previous three months. At the end of the June quarter, Wipro's employee strength stood at 2,49,758, as against 2,58,570 in the March quarter. Furthermore, the Wipro chief said that the IT industry, like all other sectors, is also making strides in Artificial Intelligence (AI). The company has announced that it is going to invest heavily in AI.