October 22, 2015 1:21:39 am
It services firm Wipro on Wednesday reported a net profit of Rs 2,235.40 crore, registering a 7.2 per cent rise on a year-on-year basis for the second quarter boosted by higher productivity and better pricing. The rise in net profit, which met Street expectations, was realised despite the impact of cross-currency movement and wage hikes.
The information services segment of the Bengaluru-headquartered firm reported a nominal 2.1 per cent growth in revenues in dollar terms for the second quarter.
The firm’s IT services revenue increased by 4 per cent on a sequential basis to touch Rs 12,042.8 crore at the end of the second quarter. The IT services revenues in dollar terms was $1831.9 million, showing a sequential growth 2.1 per cent and it was line with its guidance of 1.5-3.5 per cent.
The revenue growth in constant currency terms was put at 3.1 per cent sequentially and 8.4 per cent over the corresponding period last year. “During the quarter we grew IT revenues in dollar terms by 3.1 per cent in constant currency and maintained margins in a narrow range,’’ chief executive officer T K Kurien said.
The company reported a 4 per cent increase in profit from the IT services business over the same period last year at $381 million. The company reported a operating margin of 20.7 per cent for the quarter. The company has projected IT services revenues in the range of $1,841 million to $1,878 million for the third quarter.
“Our investments in next-gen delivery practices generated productivity to significantly mitigate the impact of wage hikes and utilisation on operating margins,” CFO Jatin Dalal said.
Wipro had also bagged a major contract in its digital business with the signing of a deal to be the IT partner of English Premier League team Chelsea Football Club.
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