Wipro, India's third largest software company, on Thursday said it expects revenue from IT (Information Technology) services business segment to be in the range of $2,722 million to $2,805 million for the second quarter ending on September 2023 (Q2FY24). This translated to a 2 percent sequential fall at the lower end, and a mere 1 percent growth at the upper end of the guided range.

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In dollar terms, the IT services revenue for the June quarter increased to $2,778.5 million, an increase of 0.8 percent year-on-year and an increase of 6.1 percent year-on-year in rupee terms.

The Bengaluru-based technology major posted a nearly 12 percent year-on-year surge in consolidated net profit for the June quarter at Rs 2,870 crore. The company's consolidated revenue for the quarter under review increased by 6 percent year-on-year to Rs 22,831 crore.

Wipro's operating margin for the first quarter was at 16 percent, up 112 basis points year-on-year, but down about 3 basis points on a sequential basis.

Wipro's margin performance was far better than its peers Tata Consultancy Services and HCL Technologies, which saw a steeper drop in the profitability sequentially.

"Wipro's first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins," said Thierry Delaporte, CEO and Managing Director, Wipro.

"Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share," Delaporte said.

"Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating margin for the first quarter was 16 percent an expansion of 112 basis point YoY. We generated strong operating cash flows at 130 percent of our net income for the quarter. EPS for the quarter grew by 11.5% YoY," said the company's chief financial officer Jatin Dalal.