India’s third largest IT services company Wipro witnessed 1.8 per cent growth in its net profit for the third quarter of the financial year 2015-2016. The company’s consolidated net profit stood at Rs 2,234 crore for the quarter ended December 31, 2015 as against Rs 2,192 crore in the corresponding quarter last year.
Total Income of the company for the October-December period was Rs 12,951.60 crore as against Rs 12,085.10 crore in the corresponding quarter last year, registering a growth of 7.17 per cent.
The company’s flagship IT services profit stood at around Rs 2,482 crore while the IT services revenue was Rs 12, 314 crore. The IT services margin for the quarter was 20.2 per cent.
In dollar terms the company’s net profit stood at $338 million, up 2 per cent. IT Services segment revenue was $1,838.3 million, a sequential increase of 0.3 per cent.
Commenting on the company’s performance T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said, “We delivered revenues in line with our guidance. We saw a pick-up 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.”
In a regulatory to the BSE, the company informed that its Board of Directors have considered and approved an interim dividend of Rs 5 per equity share of par value Rs 2.
During the quarter the company added around 2,268 people taking the total headcount to 170,664 people as on December 31, 2015. In the quarter it also added 39 new customers to its kitty.
Going forward, for the quarter ending March 31, 2016, Wipro expects its revenues from IT Services business to be in the range of $ 1,875 million to $1,912 million.
“During the quarter, we have built competitive differentiation through the acquisition of two high-potential companies – cellent and Viteos. The impact on revenues from the Chennai floods were minimized significantly by strong execution of our robust Business Continuity Plans (BCP). The additional expenses incurred in deploying BCP impacted operating margins for thequarter,” stated Jatin Dalal, Chief Financial Officer of Wipro in a release.
Effective January 1, 2016, Wipro completed the transaction announced on December 2, 2015 to acquire cellent AG, a leading IT consulting and software services company in the DACH region of Germany, Austria and Switzerland.
The IT Products Segment delivered revenue of Rs 650 crore for the quarter ended December 31, 2015.
On BSE the shares of the company was trading at Rs 540 down 0.63 per cent.
