Wipro Ltd, the country’s third largest software services firm, on Friday posted a mere 1.7 per cent sequential dollar revenue growth for the second quarter ended September, failing to break its spell of slow run seen over the last one year. It however beat market expectations in terms of quarterly net profit for the period, while forecasting muted growth for the December quarter.
For the third quarter ending December, the Azim Premji-led firm projected IT services revenues in the range of $1,560-$1,590 million, a growth of 1.1-3.1 per cent. Analysts had expected a revenue growth guidance of 2-4 per cent. The stock market did not seem particularly enthused, rising marginally by 0.98 per cent to close at Rs 364.95 on the BSE.
For the July-September period, Wipro’s consolidated net profit rose to Rs 1,611 crore from Rs 1,580 crore, up 2 per cent sequentially. Year-on-year profit was up 24 per cent. Revenue growth during the quarter was almost flat, sequentially, reaching Rs 10,657 crore from Rs 10,653 crore. On a year-on-year basis it rose 17 per cent. Wipro showed an improvement on the pricing front with off site price realisation up by 1.9 per cent and offshore by 1.5 per cent. But its 0.2 per cent volume growth for the second quarter was below par, with cross town rival Infosys posting a 3.6 per cent growth.
IT services revenue was up 23 per cent year-on-year to Rs 8,373 crore, while in dollar terms revenue was up 4.6 per cent at $1,541. Sequentially, profit from IT services was down marginally by 0.74 per cent to Rs 1,731 crore from Rs 1,744 crore in Q1. Year-on-year it was up 27 per cent.
Wipro chairman Azim Premji pointed out that the company had a decent quarter, but not a great one. FE