Q3 net dips 8.4 per cent, says Wipro

Bengaluru: IT services firm Wipro on Friday posted 8.4 per cent decline in its consolidated net profit for December quarter to Rs 1,931.3 crore but remained upbeat about growth prospects citing positive narrative from clients.

Wipro’s net profit (attributable to shareholders) stood at Rs 2,109.6 crore in the year-ago period, as per the Indian accounting norms (Ind-AS).

The revenue from operations for Wipro, which is India’s third largest IT services company, was nearly flat at Rs 13,669 crore in the quarter under review.

The company’s IT services revenue stood at $2.031 billion (in constant currency terms) growing 0.9 per cent sequentially, in line with its guidance of 0-2 per cent growth for the said quarter.

For the March 2018 quarter, it expects revenues from IT services business to be in the range of $2,033 million to $2,073 million. “...we have been seeing an improving trajectory of growth over the past four quarters and our Q4 guidance further reflects that. While there are some customer specific uncertainties, CY18 commentary from our clients look positive and we are on the right track for FY19,” Wipro CEO and member of the Board Abidali Z. Neemuchwala said. He added that the company continues to see strong growth in digital, which now constitutes more than 25 per cent of its revenues.

“We are seeing ticket sizes in standalone digital deals increasing as customers are moving to the next level of digital adoption...We now have almost 90,000 technical employees trained on digital skills,” he said.

The company said its IT services margin — at 14.8 per cent — was impacted by a provision of Rs 317.5 crore ($49.7 million) made with respect to insolvency of a customer post the balance sheet date. 

Adjusted for this event, IT services margin was higher at 17.2 per cent. Mr Neemuchwala declined to name the client but said the customer is from the energy, natural resources and utilities business. The company has declared an interim dividend of Rs 1 per share.