Active Stocks
Wed May 29 2024 15:50:35
  1. State Bank Of India share price
  2. 822.95 -0.96%
  1. Tata Steel share price
  2. 174.20 -0.37%
  1. HDFC Bank share price
  2. 1,507.85 -1.48%
  1. Power Grid Corporation Of India share price
  2. 317.55 1.52%
  1. ITC share price
  2. 430.80 0.44%
Business News/ Companies / Company-results/  Wipro Q3 profit rises 8.9% to Rs2,190 crore

Wipro Q3 profit rises 8.9% to Rs2,190 crore

Revenue rose 6.6% to `12,085 crore from `11,330 crore a year earlier

The company added 44 customers in the quarter. Premium
The company added 44 customers in the quarter.

Bengaluru: Wipro Ltd, India’s third largest software services exporter, reported a fiscal third-quarter (Q3) profit that was marginally ahead of analyst expectations, helped by client additions and an increase in spending by customers in a seasonally weak quarter for information technology (IT) firms.

Net profit in the three months ended 31 December rose 8.8% to 2,192.8 crore from 2,014.7 crore in the year-ago quarter, the company said on Friday. Revenue rose 6.7% to 12,085 crore from 11,327 crore a year earlier.

A Bloomberg poll of analysts had expected a profit of 2,149 crore on revenue of 11,999 crore.

Wipro chief executive officer T.K. Kurien was upbeat about growth prospects, but the company’s fourth quarter revenue forecast fell short of analyst estimates.

Wipro expects fourth quarter revenue of $1.81-1.85 billion, lower than analyst estimates of $1.99 billion, according to Bloomberg.

Kurien said the demand environment “continues to hold steady". He added that the company sees a recovery in demand for IT services in the retail and manufacturing sectors and “strong business demand" in the banking and financial services sector, especially in Europe and China. “One area of caution is the oil and gas industry, where we expect the plunge in crude prices to impact capex and discretionary spend in the near term," he said.

Wipro added 44 new clients in the December quarter, which is a typically weak period for IT companies because of holidays, and furloughs in the manufacturing sector.

“They need to be able to grow with existing clients, but also win new clients. And they were highlighting a number of new client wins which is always good to see," said Gartner Inc. analyst Ian Marriott.

“That’s (client wins) the be all and end all of what it comes to growing the business. They have to win more clients and grow existing clients. They have done both of that," Marriott added.

Another analyst said Wipro’s results were largely in line with her expectations.

“There was no surprise. This has been on the expected lines and there have been no major movements in terms of revenue, profit or margins," said Ankita Somani, a research analyst at MSFL Research.

On 9 January, Infosys Ltd, India’s second largest software services exporter, posted a 13% rise in third quarter net profit, beating analyst estimates, as it signed up more clients.

On Thursday, Tata Consultancy Services Ltd, India’s largest software services company, posted a 2.4% profit increase that trailed analyst estimates as clients, especially in the insurance industry, held back on outsourcing work.

Separately, Wipro said on Friday that chief financial officer and executive director Suresh Senapaty, who has been with the company for more than three decades, will retire on 31 March and be replaced by Jatin Dalal, who is senior vice-president (finance).

“Suresh has been an integral part of the company’s think-tank and has played a catalytic role in taking the company to great heights," chairman Azim Premji said in a statement, underscoring Senapaty’s “exemplary contribution" in setting “new benchmarks in finance, governance and strategy" for Wipro.

Wipro shares shed 0.79% to close at 555.25 each on Friday on BSE, while the benchmark Sensex gained 0.17% to end at 28,121.89 points and the BSE IT index lost 0.24% to close at 10,990.97 points

The results were announced after trading hours.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 16 Jan 2015, 05:11 PM IST
Next Story footLogo
Recommended For You