Wipro Q3 net up 18%, but Q4 outlook disappoints
During the October-December stretch, Wipro reported a decline in volume by 1% owing to lesser business in the non-discretionary spend, while rival Infosys had posted a 2% growth. The company on Friday recorded a 2.4% sequential dollar revenue growth for the third quarter, 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. For the fourth quarter ending March 31, the Azim Premji-led firm expects its IT services revenue to be in the range of $1,585-$1,625 million, a growth of 0.5-3%
“The expectations were set high by Infosys and TCS results. The turnaround time for the company is running out. For three consecutive quarters the company has a posted muted volume growth,” said Sanjeev Hota, of Sharekhan. After the better-than-expected results posted by peers, Wipro’s shares had gone up by 9% this year before Friday’s decline. “The lower end of the guidance is also getting lower which is a matter of concern,” added Hota.
Wipro’s consolidated net profit rose to R1,716 crore from R1,611 crore, up 7% sequentially. Year-on-year profit was up 18%. Revenue
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