Wipro Q3 net profit dips 2.17 pc to Rs 2,456 cr

IT services major Wipro on Tuesday posted 2.17 per cent dip in consolidated net profit to Rs 2,455.9 crore for December 2019 quarter, and estimated up to two per cent revenue growth for the fourth quarter. Wipro's net profit, attributable to shareholders, in the year-ago period was at Rs 2,510.4 crore.

Its revenue from operations grew 2.7 per cent to Rs 15,470.5 crore during the period under review from Rs 15,059.5 crore in the same quarter last year (as per Ind-AS). EPS for the quarter was Rs 4.3 per share and grew 3.2 per cent year-on-year. The Bengaluru-based company's numbers came just days after larger rival Infosys announced an almost 24 per cent jump in net profit, and 7.9 per cent rise in revenue. Infosys had exuded confidence in the demand environment and raised its revenue outlook for FY2019-20 in constant currency to 10-10.5 per cent.

On Tuesday, Wipro - which gets bulk of its topline from IT services - said it expects revenues from that unit to be in the range of USD 2,095 million to USD 2,137 million in the March quarter. This translates into a sequential growth of flat to two per cent. Wipro's IT services segment revenue was at USD 2,094.8 million in December quarter, a sequential growth of 2.2 per cent. This is in line with its outlook of USD 2,065 million to USD 2,106 million guided earlier.

"We have delivered a good quarter with secular growth across all business units, geographies and practices. We remain focused on deepening our customer relationships, converting our funnel and winning large deals," Wipro CEO and Managing Director Abidali Z Neemuchwala said. The company said the demand environment hasn't changed and there are uncertainties because of macro and geopolitical issues.

"...we dont see any client specific issues apart from the macro economic issues that I talked about," Neemuchwala said. While the BFSI (banking, financial services and insurance) segment has seen some softness, Wipro remains confident of the deal pipeline. The company added 4 accounts to over USD 100 million accounts.

The company has seen strong growth in the digital business. Contribution from Digital now stands at 39.8 per cent, up 22.8 per cent on a year-on-year basis. Wipro onboarded over 1,891 freshers in December quarter with the total headcount at 187,318. Voluntary attrition on last 12 months basis has reduced to 15.7 per cent.

Localisation in the US is now at 70 per cent. Wipro declared an interim dividend of Re 1 (USD 0.014) per equity share/ADS. The results were announced after the close of trading hours. Shares of Wipro closed at Rs 257.15, up marginally from the previous close on the BSE.

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