Wipro, the country’s third-largest software services exporter, reported a better-than-expected net profit of Rs Rs 1610.60 crore for the second quarter, up 24 percent on year and 2 percent on quarter.
A CNBC TV18 poll had estimated the net profit at Rs 1520 crore, down 3.8 percent on quarter.
Wipro sees the IT services revenue Rs 8,373 crore and earnings before interest and tax at Rs 1,731 crore.Reuters
The company’s revenue was Rs 10,620.3 crore as against Rs 9,064.5 a year ago and Rs 10,619.6 a quarter ago.
The company guided for a dollar revenue of $1560 million-$1590 million for the third quarter.
Shares of Wipro rose more than 2 percent to Rs 369.8.
“In-line results, with no clear sign of improvement in revenue growth. Margins outperformance is more owing to better forex realization. We would like to see improvement in revenue growth trajectory to turn constructive,” Spark Capital said in a post earnings note.
The company said the guidance is based on a rupee exchange rate of 54.98 against the dollar.
It sees the IT services revenue Rs 8,373 crore and earnings before interest and tax at Rs 1,731 crore.
Suresh Senapaty, Executive Director & Chief Financial Officer, said on CNBC TV18 that the company is cautiously optimistic about future and that there was an uptick in deal closures towards the end of the second quarter.
“Our focus on driving significant operational improvements has helped us predominantly mitigate the incremental impact of wage increases and currency volatility,” he was quoted as saying in a press release.
T K Kurien, Executive Director & Chief Executive Officer, IT Business, said the company has met the its revenue guidance. He said the company is “continuing to see consistent improvement in our engagement with customers and employees”.
The company had on Thursday announced demerger of its non-IT business into a separate entity.
“I am confident that the demerger will enhance value for all our stakeholders and provide fresh momentum for growth for each of our businesses,” Azim Premji, Chairman, said in the release.
The company said its IT services revenue was $1,541 million, a sequential increase of 1.7% and YoY increase of 4.6%.
IT services revenue in rupee terms was Rs 8,373 crore, an increase of 23 percent year on year, while the segment’s EBIT was Rs 1,731 crore, an increase of 27% on year, the company said.
Wipro added eight clients over $100 million during the quarter.
Technology infrastrucutre services business of the company grew 3.6 percent on quarter, BPO grew 5.7 percent, and energy & utilities grew 8.4 percent.
The company’s onsite and offshore price realisation received a boost of 1.9% and 1.5%, according to Spark Capital.
On a net basis, Wipro added 2,017 staff during the quarter.
