Forex losses dent Wipro profit rise
Infotech major Wipro fell short of market expectations as it reported a less-than-expected rise in net profit for the July-September quarter of the current fiscal year. HT reports. Graphicindia Updated: Oct 23, 2010 00:29 IST
Infotech major Wipro fell short of market expectations as it reported a less-than-expected rise in net profit for the July-September quarter of the current fiscal year. The company’s year-on-year net profit rose 10 per cent to Rs 1,285 crore as foreign exchange losses hit margins.
Forex losses stood at R41 crore against a gain of R24 crore in the same period of last fiscal year.
Revenues rose by 12 per cent to R7,731 crore in the quarter.
Wipro’s profit and revenue growth lagged TCS and Infosys. TCS reported a 32 per cent growth in net profit, while Infosys’ profit rose by 13.2 per cent.
“We continue to enhance our investments in transformational capabilities, client partners and domain solutions. While the macro-economic environment continues to remain uncertain, there is a high degree of confidence at the micro level,” said Azim Premji, chairman, Wipro. The company expects revenues from its IT services business to be in the range of $1,317 million to $1,343 million at a sequential increase of 3.5 per cent to 5.5 per cent for the next quarter.
“Margins declined during the quarter due to impact of employee progressions, restricted stock units grants and lower forex realisations, “ said Suresh Senapaty, executive director and chief financial officer, Wipro.