Wipro Ltd, India’s third-largest software services exporter, witnessed 2% growth in its net profit for the third quarter of the financial year and said it has met analysts’ expectations in spite of the Chennai floods and expects to do better in the next quarter.
Wipro’s net income was Rs 2,230 crore ($338 million), an increase of 2% over the same quarter last year and profit for IT services segment was Rs 2,480 crore ($375 million).
The company said revenues from its core IT services business rose 9% at Rs 12,310 crore ($1,861 million) and IT services segment revenue in dollar terms grew 1.4% sequentially and 6.3% over the same quarter last year.
The company’s chief financial officer Jatin Dalal said additional expenses due to Chennai floods during the third quarter impacted operating margins, though it was minimised significantly by strong execution of robust business continuity plans.
For the last quarter of this financial year, Wipro has projected revenues from our IT services business to be in the range of $1,875 million to $1,912 million. The company declared an interim dividend of Rs 5 a share/ADS.
“We delivered revenues in line with our guidance. We saw a pickup in large deal closures led by Global Infrastructure Services. It is becoming increasingly clear that customers want to simplify operations and optimize their IT spend while investing in Digital to transform their business. We are well-positioned to take advantage of this trend,” TK Kurien, member of the board and chief executive officer, said.
Abidali Z Neemuchwala, chief executive officer-designate, “We are focused on driving market share growth in our core businesses through integrated domain and technology services, while investing for the future in building differentiated digital capabilities. We will leverage our strong culture of innovation and extremely talented employee pool to build compelling value propositions for our customers.”
Neemuchwala will be taking over as the CEO on February 1.
Wipro added 39 new customers and 2,268 employees during the quarter taking the total strength of IT services segment to 170,664.