Wipro’s Q3 net income dips 2.2%

IT services major Wipro on Tuesday posted 2.17% dip in consolidated net profit to Rs 2,455.9 crore for December 2019 quarter, and estimated up to two% 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% 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 IndAS). EPS for the quarter was Rs 4.3 per share and grew 3.2% year-on-year.

The Bengaluru-based company's numbers came just days after larger rival Infosys announced an almost 24% jump in net profit, and 7.9% 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%.

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%.

Wipro's IT services segment revenue was at USD 2,094.8 million in December quarter, a sequential growth of 2.2%. 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.