Thursday, October 22, 2015

#Wipro Q2 Profit Up 7.2% but Q3 guidance disappointing

Indian IT major Wipro reported a consolidated net profit of Rs 2,240 crore for Q2 FY16  and revenues of Rs 12,510 crore.Its Net profit stood at Rs 2,084.8 crore during the same period a year ago.It warned for a tepid third quarter due to furloughs in the US and Europe and reduction in deal sizes.
Wipro's Q2 margins fell for the third-straight quarter. The operating margin contracted 30 basis points to 20.7% from 21% in the previous quarter.

The company management expects the pressure on top clients to continue till Q4."Deal sizes are getting smaller and the number of multi billion-dollar deals have reduced," CEO Kurien said.
"We will train 10,000 employees in digital technologies in the current year, " said Wipro CEO TK Kurien But refused to comment on its impact on its balance sheet in the nest 2 quarters.It added 67 new customers including one under $50 million and 3 under $10 million category.