Wipro Ltd’s fiscal third quarter net profit fell about 5.8% on-year to Rs 2,114.8 crore in line with the rise in sales, marginally exceeding the street estimates. A Reuters analyst poll had estimated India’s third-largest information technology company’s Oct-Dec net profit at Rs 2,087 crore. Its third quarter revenue rose 6.2% on-year to Rs 13,764.5 crore, it said.
Wipro’s IT services segment revenue for the quarter at $1.9 billion rose 3.5% on-year, but fell a little short of the company’s guidance of $1.92-1.96 billion.
Wipro said it expects revenues from IT services business to be in the range of $1,922 million to $1,941 million for the current quarter (Jan-Mar).
The company’s IT services margin was at 18.3% for the quarter, as compared to 17.8% for the preceding quarter. It said its IT services segment had a headcount of 179,129 as of December 31, 2016.
“We expanded operating margins by 50 basis points in a seasonally weak quarter and generated strong operating cash flows by disciplined execution,” Wipro’s Chief Financial Officer Jatin Dalal said.
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EARNINGS ALERT: Wipro Q3 dollar revenue disappoints the street in Q3. Here’s a quick review. pic.twitter.com/XhAUdruL96
— CNBC-TV18 News (@CNBCTV18News) January 25, 2017
Wipro’s IT products segment earned it Rs 570 crore in revenue for the Oct-Dec quarter.
The company declared an interim dividend of Rs 2 per share.
Wipro CEO Abidali Z Neemuchwala said the company expects an uptick in CHANGE investments. The company continues to see some large deals in the funnel, but does not expect customer budgets to change drastically, Neemuchwala said. He added that restructuring of India and Middle East will be a headwind in the near term.
Wipro shares ended down 1.62% on the NSE at Rs 473.7 before the results were announced.