Wipro Q3 profit meets expectations; up 2%`

Operating margins for its IT services business fell to 20.2 per cent from 21.8 per cent a year earlier due to floods in Chennai where it employs 13 per cent of its staff.

By: ENS Economic Bureau | Mumbai | Published: January 19, 2016 1:46 am

Wipro Ltd, India’s third-largest software services exporter, has posted a 2 per cent rise in net profit at Rs 2,234 crore for the December quarter as compared with Rs 2,193 crore in the same period of last year.

The company’s revenue from IT services grew 9 per cent to Rs 12,310 crore in line with the guidance. Revenue contribution from its energy, natural resources and utilities clients dropped to 14.4 per cent in the December quarter from 16.4 per cent in the year ago period, the company said in a statement.

Operating margins for its IT services business fell to 20.2 per cent from 21.8 per cent a year earlier due to floods in Chennai where it employs 13 per cent of its staff.

TK Kurien, Member of the Board & CEO of Wipro, said, “We delivered revenues in line with our guidance. We saw a pick-up in large deal closures led by global Infrastructure services.

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It is becoming increasingly clear that customers want to simplify operations and optimise their IT spend while investing in digital to transform their business. We are well-positioned to take advantage of this trend.”

Giving revenue guidance for the year, the company said, “we expect revenues from our IT services business to be in the range of $ 1,875 million to $1,912 million.” Wipro shares rose 0.72 per cent to Rs 547.35 on the BSE on Monday. Wipro had already warned of a muted performance for the quarter on account of furloughs and Chennai-floods. It had said it expected to meet the lower half of its guidance range of $ 1,841-1,878 million.

While the numbers are in line with Wipro’s own estimates, the performance is pale in comparison to rival Infosys which reported 6.6 per cent growth in net profit and 15.2 per cent jump in revenues.

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