Wipro Q3 profit falls 3.2% on slowdown in financial services
BENGALURU: Wipro Ltd’s profit fell 3.8% on a sequential basis to ₹2,463 crore in the quarter ended December. It had reported a net profit of ₹2,561 crore in the preceding three months.
On a year-on-year basis, net profit declined by 3.2% from ₹2,545 crore for the quarter ended December 31, 2018.
Revenue from operations increased sequentially by 2.3% to ₹15,470.5 crore in the December quarter, from ₹15,125.6 crore in the previous quarter. On a yearon-year basis, revenue from operations grew 2.7% from ₹15,059.5 crore last year.
Wipro declared an interim dividend of ₹1 per equity share.
The company has now forecast revenue to grow in the range of $2.095 billion to $2.137 billion—a 0-2% sequential growth for the January-march quarter. The upper end of the guidance is slightly below analyst expectations.
In dollar terms, revenue from IT Services increased 2.2% sequentially to around $2.09 billion in the December quarter. Constant currency IT Services revenue increased by 1.8% on a sequential basis.
“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,” said Abidali Z Neemuchwala, chief executive officer and managing director.
“We expanded operating margin by 0.3% aided by a favourable movement in the currency. Further, we generated strong operating cash flows led by disciplined execution at 124% of our net income,” said Jatin Dalal, chief financial officer.
Neemuchwala said, “In financial services, we saw a slowdown in our growth rates due to continued softness driven by the macroeconomic environment .... while Tech BU was impacted by furlough and slowdown in spend by consumers in semi-conductor industries.”
“The overall demand environment has neither improved nor deteriorated, but we see some level of uncertainty due to the various geopolitical risks at play,” he said.