Wipro beats forecast, Q2 net up 28% to Rs. 1,932 cr
India’s third-largest software company, Wipro, beat expectations with a 28% year-on-year rise in consolidated net profit to Rs. 1,932 crore in July-September, aided by a falling rupee and higher spending by clients.business Updated: Oct 23, 2013 02:11 IST
India’s third-largest software company, Wipro, beat expectations with a 28% year-on-year rise in consolidated net profit to Rs. 1,932 crore in July-September, aided by a falling rupee and higher spending by clients.
The company was expected to post a profit of about Rs. 1,800 crore. Consolidated revenues rose 19% to Rs. 10,992 during the second quarter, the company said on Tuesday.
Wipro said revenues from its core IT services business is expected to grow in a range of 1.8% to 3.6% in dollar terms in the next quarter (October-December) against the second quarter, up marginally from an analyst estimate of 1.5-3.5%.
“There are positive indicators on the global economy. Client confidence is on the uptick and we see it reflected in our results,” said Azim Premji, chairman, Wipro.
With better-than-expected results, Wipro joins ranks with industry peers Tata Consultancy Services (TCS) and HCL Tech that had also beat analyst expectations for their quarterly profits. Infosys profits were in line with analyst estimates.
“We achieved a broad-based revenue growth across all industry verticals and continue to focus on executing to our strategy,” said T K Kurien, chief executive officer, Wipro.
In dollars terms, Wipro’s net profit stood at $309 million in the second quarter while consolidated revenues were at $1.76 billion.
The company added 45 clients during the quarter, taking its total number of clients to 1,256. Majority of its client additions, during the quarter came in from the $10-million bracket.
“We believe the initial gains from restructuring have started showing and expect the company to do well in the quarters ahead,” said Ankita Somani, technology analyst at the brokerage firm Angel Broking.
Wipro’s stock ended up 1.7% to Rs. 515 on BSE. The results were declared after stock markets closed for the day.