Wipro wins $300 million IT service deal from ICICI Bank

Wipro has won a seven-year deal, valued at $300 million, from ICICI Bank to provide a suite of services.
Wipro at MWC 2018
Wipro generated 31.6 percent of its total revenue from Banking, Financial Services and Insurance segment during the June quarter of 2019. Banking, Financial Services and Insurance is the largest business segment for Wipro.

Currently, Vara lnfotech, an IT services company, provides these services to ICICI Bank. Wipro will sign a business transfer agreement with Vara lnfotech for Rs 321 crore to absorb about 3,800 employees of Vara lnfotech along with its existing contracts, facilities and assets.

The revenue generated by this business in financial year 2019 stood at Rs 221.5 crore, Wipro said. The latest transaction is expected to be completed during the quarter ending September 30.

Wipro’s net profit grew 12.5 percent on a year-on-year basis to Rs 2,387.6 crore in the first quarter on the back of demand from key financial clients. The company guided for up to 2 percent sequential revenue growth for the July-September period.

Wipro’s revenue increased 5.3 percent year-on-year to Rs 14,716.1 crore in the April-June quarter. Revenues of Wipro fell 2.4 percent quarter-on-quarter because of the company’s divestment in Workday and Cornerstone on-demand business to the US-based Alight for a cash consideration of up to $110 million.

IT services’ operating margin for the quarter was 18.4 percent, an increase of 0.8 percent year on year. IT services revenue of Wipro decreased 1.3 percent to $2.038 billion on a sequential basis and grew 4.3 percent year-on-year.

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