Wipro reports 12% QoQ drop in Q3 profit at Rs 1930 crore

  • Wipro reports 12% QoQ drop in Q3 profit at Rs 1930 crore

Wipro reports 12% QoQ drop in Q3 profit at Rs 1930 crore

It had posted a net profit of Rs 2,189.60 crore in the corresponding quarter a year ago.

Digital business contributed 25 per cent to IT services revenue, marginally up one per cent from 24 per cent quarter ago. This reported flat growth on a year on year basis.

Under the International Financial Reporting Standard (IFRS), net income was $303 million and gross revenue $2,141 million.

Wipro, which gets bulk of its topline from IT services, said it expects March quarter revenues from that business to be in the range of $2,033 million to $2,073 million.

However, the margin was under pressure as it came in lower at 14.58 percent against 17.3 percent year on year.

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

"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.

The company also forecast that core IT services revenue in the first three months of 2018 would rise to between $2.03 billion and $2.07 billion rupees, compared with $2.01 billion rupees in the previous quarter.

Though the company acquired 79 new customers during the quarter as against 41 quarter ago and 108 year ago, the total number of active clients declined to 1,281 in Q3 from 1,323 year ago.

Wipro's revenue from operations was almost flat at Rs 13,669 crore in the quarter under review as against Rs 13,687.8 crore in the year-ago period, it added.

Shares of the company gained 1.1 percent ahead of results in a Mumbai market that closed 0.72 percent higher.

Wipro said the number of clients contributing revenue of more than $50 million rose to 41 as of December 31, compared with 33 a year earlier.

The company saw its headcount at 1,62,553 at the end of the third quarter.