Wipro on Tuesday reported 8.3 per cent quarter-on-quarter fall in consolidated net profit at Rs 2,051.90 crore for quarter ended June 30, 2016 against Rs 2238.20 crore in the sequential quarter ended March 31, 2016.
During April-June quarter, consolidated revenue of the IT company dropped by 0.32 per cent to Rs 13697.60 crore against Rs 13,741.70 crore in the previous quarter.
For the quarter ending September 30, 2016, Wipro expects revenue from the IT Services business to be in the range of $1,931 million to $1,950 million.
The IT services segment had a headcount of 173,863 as of June 30, 2016.
Abidali Z Neemuchwala, chief executive officer and member of the board in a release said, “We have delivered revenues in line with our guidance. We expect the trajectory of growth to build gradually over the course of the year as we drive execution on our strategic themes and make progress towards achieving a sustainable growth trajectory.”
Jatin Dalal, Chief Financial Officer of Wipro, said, “The IT services margin, at 17.8 per cent in the said quarter as against 19.7 per cent in January-March 2016, reflected the investments in rewarding employees as well as impact of consolidation of acquisitions for the full quarter. We continue to expand the reach of our automation programmes to harness efficiency gains.”
Wipro which had decided to buy US-based Viteous group in December for $130 million said it has decided not to proceed with the buyout. The company cited inordinate delays in completion of closing conditions that exceeded the target closing date as the reason for not going ahead with the buyout.
Share price of the company ended 0.47 per cent down at Rs 549.40 on Tuesday.