IT major Wipro reported a 14% year-on-year rise in net profit for the January-March quarter on Wednesday, in line with market expectations.
The performance coming in the backdrop of a management shake-up in the previous quarter, was better than that of Bangalore rival Infosys but lagged industry leader Tata Consultancy Services (TCS).
Wipro, which is the No 3 in the information technology industry after TCS and Infosys, posted a net profit of Rs1,375 crore, up from Rs1,209 crore a year ago.
Wipro also announced a 12 to 15% salary hikes for its employees in India, and a 2 to 4% raise for its employees who work at customer sites overseas. The pay hikes take effect on June 1.
Though profits looked up, Wipro said it expected revenues to be little changed in April-June, the first quarter of the new fiscal year.
“We expect revenues from our IT services business to be in the range of $1.39 billion to $1.42 billion for the quarter ending June 31,” a statement by Wipro said. That compares with the $1.41 billion revenues in the January-March quarter. Wipro said the muted revenue guidance was only for one quarter and expected a bounce-back later.
Wipro’s stocks closed at Rs450.75, down 3% at the Bombay Stock Exchange.
“We have made good progress in creating a leaner, simpler and more customer-centric organisation structure. The organisational changes are complete but the journey has just begun,” said chairman Azim Premji, whose board removed to joint CEOs in the previous quarter and installed TK Kurien as a single CEO.
The company’s revenues for the quarter stood at Rs8,302 crore, 18% above the Rs7,016 crore reported during the same period of the past year. Wipro added net 2,894 employees and 68 new clients during the quarter.