Wipro net profit up at Rs. 2015 crore in Q3, meets estimates
NEW DELHI : Wipro reported Rs. 2,015 crore in net profit (from continuing operations) on sales of Rs. 10,330 crore during the December quarter. Brokers polled by NDTV had estimated India’s third-largest IT services exporter to report net profit of Rs. 1,997 crore on sales of Rs. 10,343 crore.
Wipro also forecast revenues from its main IT services business of $1.71 billion to $1.75 billion, or a growth of between of 2 and 4 per cent in the quarter ending March 31, matching analysts’ estimates.
For the December quarter, dollar revenues rose 2.9 per cent sequentially to $1,678.4 million, in line with the company’s guidance of $1,660-1,690 million. Wipro’s larger rivals TCS and Infosys posted 3 per cent and 1.7 per cent sequential rise in dollar revenues for the same quarter, while smaller HCL Tech outperformed with 4 per cent revenue growth.
Operating margins for the quarter stood at 23 per cent, higher than 22.5 per cent Wipro posted in the second quarter. During the same period, TCS reported operating margins at 29.8 per cent, while Infosys margins stood at 25 per cent.
“Our focus on account management has yielded encouraging results… During the quarter, our Global Infrastructure Services business grew strongly on revenues,” T K Kurien, executive director & chief executive officer of Wipro said.
Wipro shares, which closed 3.15 per cent lower at Rs. 552.45 today, are likely to rise when markets open next week, they added.
All four big IT firms have now announced their earnings for the December quarter. Infosys and HCL Tech surpassed estimates, but TCS shares fell as much as 6 per cent today after the company reported slower-than-expected revenue growth during October to December.
The fiscal third quarter is supposed to be tepid for outsourcers because of lesser working days (at client sites) and year-end shutdowns in US and Europe.