India's third largest IT exporter Wipro reported a 8% decline in its net profit for the second quarter of the fiscal ended September 30, 2016 and stood at Rs. 2070 core when compared to the same period last year. The total revenue for the period stood at Rs. 13766 core registering a growth of 10 per cent as against the same period last year.
Wipro's flagship business IT services business revenue was Rs.13,137 crore while the IT services segment profit was Rs. 2340 core, a decrease of 5 per cent when compared to same period last year. The company expects its revenue from IT services to be in the range of $1,916 million to $1,955 million for the third quarter ending December 31, 2016.
Commenting on the performance Abidali Neemuchwala, Chief Executive Officer and Member of the board said, "We delivered revenues in constant currency at the top end of our guidance range." "The demand environment for IT services industry is evolving fast. As tech spends increasingly transfer from run bucket to change bucket. The IT services industry is experiencing significant transition," added Mr. Neemuchwala.
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The IT Services segment had a headcount of 174,238 people as of September 30,2016. IT services margin was 17.8 per cent for the quarter. Wipro Ventures the VC arm of Wipro has so far made 8 investments with a committed spend of around $22 million. "Our margins was flat in Q2. We maintained margins in Q2 despite the impact of salary increase for an incremental two months due to strong operational improvements in automation-led productivity, offspring and utilization," said Jatin Dalal, Chief Financial Officer, Wipro.