Monday, 30th October 2017

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Wipro net dips 2.7%

The company's numbers came after larger rival Infosys announced an almost 24 per cent jump in net profit

  • Published 15.01.20, 12:45 AM
  • Updated 15.01.20, 12:45 AM
  • a min read
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IT services major Wipro on Tuesday posted a 2.17 per cent dip in consolidated net profit at Rs 2,455.9 crore for the December 2019 quarter and estimated up to 2 per cent revenue growth for the fourth quarter. Wipro’s net profit, attributable to shareholders, in the year-ago period was Rs 2,510.4 crore.

Revenue from operations grew 2.7 per cent to Rs 15,470.5 crore from Rs 15,059.5 crore in the same quarter last year (Ind-AS). Earnings per share (EPS) for the quarter was Rs 4.3 per share and grew 3.2 per cent year-on-year.

The Bangalore-based company’s numbers came days after larger rival Infosys announced an almost 24 per cent jump in net profit, and 7.9 per cent rise in revenue. Infosys had exuded confidence in the demand environment and raised its revenue outlook for 2019-20 in constant currency to 10-10.5 per cent.

On Tuesday, Wipro, which gets the bulk of its topline from IT services, said it expects revenues from that unit to be in the range of $2,095 million to $2,137 million in the March quarter. This translates into a sequential growth of flat to 2 per cent.

Wipro’s IT services segment revenue was at $2,094.8 million in the December quarter, a sequential growth of 2.2 per cent. This is in line with its outlook of $2,065 million to $2,106 million guided earlier.

“We have delivered a good quarter with secular growth across all business units, geographies and practices. We remain focused on deepening our customer relationships, converting our funnel and winning large deals,” Wipro CEO and managing director Abidali Z. Neemuchwala said.

He added that in financial services, Wipro saw a slowdown in growth rates because of continued softness, driven by the macro-economic environment.

“We, however, remain confident of winning the new deals so that we can leverage our strong capabilities in the digital segment,” he said.

Neemuchwala said: “The overall demand environment has neither improved nor deteriorated, but we see some level of uncertainty because of the various geo political risks at play.”