Bangalore-headquartered country's third largest IT services vendor Wipro has reported 1.8 per cent growth in its net profit for the 3rd quarter of FY2015-16. The company’s consolidated net profit stood at Rs 2,234 crore for the quarter ended December 31, 2015 as against Rs 2,192 crore in the corresponding quarter last year.
Analysts polled by Thomson Reuters estimated net profit in the quarter at Rs 2,223 crore.
Total Income of the company for the October-December period was Rs 12,951.60 crore as against Rs 12,085.10 crore in the corresponding quarter last year, registering a growth of 7.17 per cent.
However, the company operating margins were hit which fell to 20.2 percent from 21.8 percent a year ago, mainly on account of Chennai floods and the additional expenses incurred in deploying Business Continuity Plans
The company’s flagship IT services profit stood at around Rs 2,482 crore while the IT services revenue was Rs 12, 314 crore. The IT services margin for the quarter was 20.2 per cent.
In dollar terms the company’s net profit stood at $338 million, up 2 per cent. IT Services segment revenue was $1,838.3 million, a sequential increase of 0.3 per cent.
Commenting on the result Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities said, “Wipro’s 3QFY16 results were lower than our estimates with 1.4% CC revenue growth and a 45bps fall QoQ. Wipro continues to be impacted by the lack of scale up in large accounts, apart from the continuing challenges in the Energy / Telecom segments. 4Q IT services growth guidance of 2% - 4% includes about 1.25% growth from acquisitions, we estimate. Wipro’s valuations are at a discount to larger peers. Markets will accord higher valuations after seeing consistent high revenue growth, we believe.”
Analysts polled by Thomson Reuters estimated net profit in the quarter at Rs 2,223 crore.
Total Income of the company for the October-December period was Rs 12,951.60 crore as against Rs 12,085.10 crore in the corresponding quarter last year, registering a growth of 7.17 per cent.
However, the company operating margins were hit which fell to 20.2 percent from 21.8 percent a year ago, mainly on account of Chennai floods and the additional expenses incurred in deploying Business Continuity Plans
T K Kurien, #CEO: "We delivered Revenues in line
with our guidance. We saw a pick-up in large deal closures led by Global Infra Services"
— Wipro (@Wipro) January 18, 2016
The company’s flagship IT services profit stood at around Rs 2,482 crore while the IT services revenue was Rs 12, 314 crore. The IT services margin for the quarter was 20.2 per cent.
In dollar terms the company’s net profit stood at $338 million, up 2 per cent. IT Services segment revenue was $1,838.3 million, a sequential increase of 0.3 per cent.
Commenting on the result Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities said, “Wipro’s 3QFY16 results were lower than our estimates with 1.4% CC revenue growth and a 45bps fall QoQ. Wipro continues to be impacted by the lack of scale up in large accounts, apart from the continuing challenges in the Energy / Telecom segments. 4Q IT services growth guidance of 2% - 4% includes about 1.25% growth from acquisitions, we estimate. Wipro’s valuations are at a discount to larger peers. Markets will accord higher valuations after seeing consistent high revenue growth, we believe.”
