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Wipro's 24% Q2 profit surge beats Street expectations
India's third largest software company, Wipro Ltd, on Friday reported a 24% jump in its net profit for the July-September quarter year-on-year, at Rs. 1,611 crore, and raised its revenue outlook for the third quarter by a notch. HT reports.
India's third largest software company, Wipro Ltd, on Friday reported a 24% jump in its net profit for the July-September quarter year-on-year, at Rs. 1,611 crore, and raised its revenue outlook for the third quarter by a notch.
Wipro's performance comes in the backdrop of rising demand from western clients, and was slightly better than market expectations.
The firm said it won a string of orders, including multi-year deals with a US-based healthcare company and a large North America-based department store chain.
IT services accounted for 93% of Wipro's profit; non-IT businesses such as consumer care and lighting contributed 6% to its net profit. IT products contributed 1% to the profit.
Wipro had on Thursday announced it is hiving off its non-IT businesses into a separate company, Wipro Enterprises.
The company's net revenue during the quarter rose 17% to Rs. 10,657 crore. IT services contributed 79% to this chunk.
"The quality of demand and business orders is promising," said Azim Premji, chairman Wipro. "We are cautiously optimistic for the future."
Wipro has forecast revenues from IT services to be in the range of $1.56 billion to $1.59 billion in the quarter ending December, which is in line with analysts' expectations.
The firm added 53 clients and a little over 2,000 heads to its staff during July to September.
"Our focus on driving significant operational improvements has helped us predominantly mitigate the incremental impact of wage increases and currency volatility," Suresh Senapaty, executive director and chief financial officer of Wipro said.
