Wipro on Tuesday reported more than 5 per cent quarter-on-quarter rise in consolidated net profit at Rs 2,190 crore for quarter ended September 30, 2017 against Rs 2,083 crore in the previous quarter ended June 30, 2017. Earlier, Brokerage firm Emkay Global Financial Services expected a 4.50 per cent QoQ and 4 per cent year-on-year (YoY) dip in bottom line figures of Wipro in Q2FY18. “Operating profit margin of the company can be impacted by wage hike, put into effect in June,” the firm noted.
India’s IT bellwether reported IT service revenue at Rs 13,169 crore as against a CNBC-TV18 poll of Rs 13,200 crore. The EBIT also came in higher than expected, as Rs 2,278.4 crore, as against CNBC TV18’s poll estimate of Rs 2,191.2 crore. EBIT margin saw a rise of more than 17%, as against analysts estimate of 16.6%. Constant currency growth saw a 0.3% rise as against poll estimates of 0.9%. In the last quarter, the IT major had reported a consolidated revenue of Rs 13,626 crore.
Kotak Institutional Equities had said in a research note, “We expect investor focus on positioning in digital and progress in large digital deals, growth from top 10 accounts and increase in $50 million/$ 100 million+ clients, integration progress on various acquisitions, outlook for healthcare vertical, measures taken to defend share in core areas of competence ie IMS, ERD and BPO and confidence in convergence with industry growth starting 4QFY18.”
Wipro shares closed at Rs 290.05, down by more than 0.2% since the previous close. Wipro shares have returned 22% in the year so far, at a time when the BSE IT Index is reeling under pressure with returns of just 2%.