Wipro posts 35% rise in Q2 net profit, beats estimates
BENGALURU: Indian software exporter Wipro Ltd on Tuesday reported ₹2,550 crore net profit for the second quarter of FY20, registering a 35% growth over the same period last year.
Sequentially, net profit grew 7% from ₹2,390 crore a quarter ago.
The company reported a better-than-expected Septemberquarter profit as the company managed to withstand a global spending squeeze among its financial clients that has hurt the sector overall.
Analysts on an average were expecting the company to earn ₹2,273 crore, according to Refinitiv data.
The Bengaluru-based company reported a revenue of ₹14,656 crore ($2.05 billion) for its key information technology (IT) services unit. The operating margins for this segment rose 3.1%.
For the December-quarter, Wipro expects a revenue between $2.07 billion and $2.11 billion for that unit.
Wipro’s earnings per share (EPS) of ₹2 face value shot up 37%.
“Overall growth was broadbased with six out of seven industry verticals growing on a yearon-year basis,” chief executive officer (CEO) Abidali Neemuchwala said in a statement.
The company added 57 clients during the quarter as against 41 a quarter ago and 76 a year ago, taking their number to 1,027 as against 1,060 a quarter ago and 1,131 a year ago.
Wipro’s numbers came in days after larger rival Tata Consultancy Services Ltd’s quarterly profit missed expectations.
Infosys Ltd only managed to meet estimates, underscoring the growth woes of the $180-billion Indian information technology services sector heavily dependent of Western clients for revenue.