Wipro Q3 profit falls 3.8%, sees Q4 IT services cc revenue growth at 0-2%


Software services provider, Wipro on January 14 registered a 3.8 percent sequential decline in consolidated profit at Rs 2,455.9 crore for the quarter ended December 2019.

However, total revenue from operations grew 2.3 percent sequentially to Rs 15,470.5 crore, the company said in its BSE filing.

Generally, analysts track company’s IT services business which increased 3 percent quarter-on-quarter to Rs 15,100.6 crore in Q3FY20, which was in line with street estimates.

IT services revenue in dollar terms rose 2.2 percent sequentially to $2,094.8 million in quarter ended December 2019 and constant currency revenue growth stood at 1.8 percent QoQ.

“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,” Abidali Z Neemuchwala, CEO and Managing Director said.

Wipro expects revenue from IT Services business to be in the range of $2,095-2,137 million, which translates to a sequential growth of 0-2 percent.

The upper end of guidance was slightly below analyst expectations. The guidance for Q4 was expected at 0-2.5 percent, according to the average of estimates of analysts polled by CNBC-TV18

At operating level, IT services earnings before interest and tax (EBIT) grew 4.6 percent sequentially to Rs 2,773.2 crore and margin expanded 30bps QoQ to 18.4 percent due to weak rupee, which came in higher than the poll of analysts conducted by CNBC-TV18 that was pegged at Rs 2,708.1 crore and 18 percent respectively.

“We expanded operating margins by 0.3 percent aided by a favorable movement in the currency. Further, we generated strong operating cash flows led by disciplined execution at 124 percent of our net income,” Jatin Dalal, Chief Financial Officer said.

Wipro announced an interim dividend of Re 1 per share.

News Source: Moneycontrol

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