Wipro Q3 net declines 8.7% to Rs 1,930 crore

Wipro Q3 net declines 8.7% to Rs 1,930 crore

Wipro Q3 net declines 8.7% to Rs 1,930 crore

India's third largest IT services company Wipro on Friday reported 8.7% year-on-year decline in its consolidated net profit at Rs 1,930 crore for the third quarter ended December 2017, compared with the corresponding quarter of last year.

The Bengaluru-based IT major had registered a net profit of Rs 2,115 crore in the year ago period. On a sequential quarter basis, the net profit has come down by 12%, compared to Rs 2,189 crore in the September quarter of 2017-18. The decline in profits was on account of a 2.3% rise in expenses, which stood at Rs 11,704 crore, compared with Rs 11,441 crore in the year ago quarter.

Its revenue from operations dropped marginally by 0.1% to Rs 13,669 crore during the second quarter, compared with Rs 13,688 crore in the corresponding quarter of last year.

IT Services Margin for the quarter was 14.8%, impacted by a provision of Rs 318 crore ($49.7 million) made with respect to insolvency of a customer post the balance sheet date. Adjusted for this event, IT Services Margin for the quarter was 17.2%, the company said in a statement.

The company's board approved an interim dividend of Re 1 per share (50% on an equity share of par value of Rs 2).

Wipro, which gets bulk of its topline from IT services, said it expects March quarter revenues from that business to be in the range of $2,033 million to $2,073 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, Chief Executive Officer and Member of the Board. "Our unique digital capabilities powered growth in top clients and positioned us well to drive our clients' digital transformation," he said, adding that the digital business contributes over 25% of revenues.

The increase in the company's profits came from efficiency in its general and administrative expenses, which were down to Rs 708.5 crore in the quarter under consideration.

"We have made strong progress in our client mining with number of clients contributing revenues over $50 million increasing from 33 to 41 in the last one year. In the first nine months of the current fiscal, we generated robust operating cash flows of Rs 7,700 crore, 14.2% more than the same period last year. We also completed the share buyback in December and saw strong participation from our investors," CFO Jatin Dalal said.

Americas contributed highest to the IT major's revenues, with 53.1% contribution, followed by Europe (25.9%), and APAC and Other Emerging Markets (11.0%).

The scrips of the company closed up by 0.74% on BSE at Rs 328.45 per scrip.

The company said it has concluded the buyback of 343.75 million equity shares. This has resulted in a total cash outflow of Rs 11,000 crore.

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