Wipro posts 7.2 per cent rise in Q2 net profit

Consolidated net profit of India's 3rd largest software services firm is Rs 2,235.4 crore

October 21, 2015 05:08 pm | Updated October 22, 2015 12:56 am IST - BENGALURU/MUMBAI

Country’s third largest software services firm Wipro on Wednesday reported a 7.2 percent growth in consolidated net profit at Rs 2,235.4 crore for the second quarter ended September 30, 2015.

The city-headquartered firm had posted a net profit (after tax, minority interest and share of profit of associates) of Rs 2,084.8 crore in the year-ago period, the IT firm said in a statement.

Net sales rose by 6.3 percent to Rs 12,566.8 crore in July-September quarter this fiscal from Rs 11,816 crore in the same period a year ago, it added.

In dollar terms, the revenue from IT services registered a quarter-on-quarter growth of 2.1 percent at USD 1.83 billion, in line with its guidance of USD 1.82 million to USD 1.85 million.

For the October-December 2015 quarter, Wipro said it expects revenues from IT services business to be in the range of USD 1,841 million to USD 1,878 million.

Commenting on the performance, Wipro Chief Executive Officer T K Kurien said: “During the quarter, we grew IT Services Revenues in dollar terms by 3.1 per cent in constant currency and maintained margins in a narrow range.”

The IT services segment added 6,607 people to take the total headcount to 1,68,396 employees as of September 30, 2015. The firm added 67 new customers during the quarter.

“Our investments in next-gen delivery practices generated productivity to significantly mitigate the impact of wage hikes and utilisation on operating margins,” Wipro Chief Financial Officer Jatin Dalal said.

The impact of cross-currency on operating margins was compensated by the benefits from rupee depreciation, he added.

Wipro’s IT products segment delivered revenue of Rs 540 crore (USD 83 million) in the reported quarter.

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