Wipro net beats estimates

Wipro on Tuesday reported a better-than-expected profit for the September quarter, led by a good show in the financial services vertical.

By Our Special Correspondent in Mumbai
  • Published 18.10.17
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Mumbai: Wipro on Tuesday reported a better-than-expected profit for the September quarter, led by a good show in the financial services vertical.

The country's third largest software services provider reported a net profit of Rs 2,192 crore, which marked a 6 per cent rise over Rs 2,067.2 crore in the same period of last year.

Analysts had expected the Bangalore-based firm to report a net profit of a little over Rs 2,000 crore.

During the quarter, IT services revenues in dollar terms showed a growth of 2.1 per cent over the preceding quarter. The number crossed $2 billion during the period and stood at $2013.5 million.

Another positive element was the jump in IT services margins, which stood at 17.3 per cent compared with 16.8 per cent for the preceeding quarter ended June 30.

Wipro said while the top 10 accounts accelerated momentum by growing 4.3 per cent sequentially, digital revenues stood at 24.1 per cent of its IT services revenues.

The quarter also saw good performance from verticals that included financial services and manufacturing & technology. These showed a growth of 5.1 per cent and 3.4 per cent, respectively, over the preceding three months.

In terms of geographies, Europe grew 5.8 per cent sequentially even as APAC and other emerging markets showed a rise of 7.4 per cent.

However, the Street was disappointed by the guidance given by the firm. Wipro said it expected revenues from its IT services business to be in the range of $2,014-2,054 million for the quarter ending December 31. This marks a growth of 0-2 per cent in sequential terms, which came below analyst estimates.

"Our unique digital capabilities powered growth in top clients and position us well to drive our clients' digital transformation," Abidali Z. Neemuchwala, CEO and member of the Wipro board, said.