Wipro posts 7.6 per cent Q2 profit fall as employee costs rise

Wipro said it expects its IT service revenue for the October-December quarter of 2016-17 to be in the range of USD 1,916 million to USD 1,955 million.

By: PTI | Mumbai | Published:October 21, 2016 5:29 pm
Wipro, Wipro Q2 results, Wipro results, Wipro Q2 profit, Wipro profits, Wipro performance, Wipro quarter profits With IT services revenue at USD 1,916 million in the September quarter, Wipro missed its guidance of USD 1,931 million to USD 1,950 million given at the beginning of the quarter.

Country’s third largest software services firm Wipro on Friday reported 7.6 per cent decline, year-on-year, in consolidated net profit at Rs 2,070.4 crore for the September quarter of the current financial year. Stating that it foresees a “mixed” demand environment, Wipro said it expects its IT service revenue for the October-December quarter of 2016-17 to be in the range of USD 1,916 million to USD 1,955 million.

With IT services revenue at USD 1,916 million in the September quarter, Wipro missed its guidance of USD 1,931
million to USD 1,950 million given at the beginning of the quarter. “As we look forward, the demand environment is mixed in a seasonally weak quarter affected by furloughs and lower number of working days,” Wipro Chief Financial Officer Jatin Dalal said in a statement.

The city-headquartered firm had posted a net profit (after tax, minority interest and share of profit of associates) of Rs 2,241 crore in the year-ago period. Total income from operations rose by 10.5 per cent to Rs
13,897 crore in July-September quarter of this fiscal from Rs 12,567 crore in the same period a year ago, it added.

The IT services segment had a headcount of 174,238 as of September 30, 2016. Wipro’s IT products segment delivered revenue of Rs 770 crore (USD 115 million) in the reported quarter.