JOIN USWipro Q2 net up 5.57% to Rs 2,190 crore
India’s third largest IT services firm Wipro on Tuesday reported a 5.57% rise in its consolidated net profit at Rs 2,189.5 crore for the July-September quarter.
The Bengaluru-based bellwether had registered a net profit of Rs 2,073.9 crore in the year-ago period. Its gross revenue declined by 2.49% to Rs 13,423.4 crore during the second quarter compared to Rs 13,765.7 crore in the corresponding quarter last fiscal.
The increase in profits was on account of efficiency in its general and administrative expenses, which were brought down to Rs 708.5 in the quarter under consideration.
“Productivity gains generated by our HOLMES automation suite and operational efficiencies overcame the incremental impact of wage hikes and expanded IT Services margin to 17.3%.” said Jatin Dalal, CFO.
Wipro, which gets bulk of its topline from IT services, said it expects revenues from that business to be in the range of$2,014 million to $2,054 million in the December quarter.
The company has also crossed the milestone of $2 billion revenue in IT Services in the US dollar terms. IT Services Segment Revenues for the company in dollar terms were $2,013.5 million.
“We surpassed the milestone of $2 billion in quarterly revenues for IT Services on the back of rigorous execution of our strategy.” said Abidali Z Neemuchwala, CEO and Member of the Board.
“In constant currency, revenues were in line with the guidance range. We had strong performance in operating margins with expansion of 48 basis points despite the two month impact of wage increase by driving productivity,” Neemuchwala added. He said the company’s digital capabilities powered growth in top clients. “Wipro is going ahead with its set goal of digital transformation and stated that demand commentary is unchanged,” he said.
Earlier various analysts had predicted Wipro’s revenue growth to be not more than 1%.”Key factors to watch out for in case of Wipro will be 3QFY18 revenue growth guidance and signs of sustenance of growth uptick,” said a report by Reliance Securities.
Americas contributed highest to the IT major’s revenues, with 53.6% contribution, followed by Europe (25.1%), and APAC and Other Emerging Markets (11.4%).
Wipro’s revenues from IT products for the quarter was Rs 300 crore, while the margin for the quarter was 2.9% compared to 0.5% for the quarter ended June 30, 2017, the company said in a statement.
During the quarter, Wipro won large deals globally, which includes a multi-year engagement with an automotive MNC. The company’s shares ended the day’s trading on BSE at Rs 289.35 per share, showing a decline of 0.24% over the previous close.
DH News Service