Wipro CEO Abidali Neemuchwala. Hemant Mishra/Mint

Wipro announces 1:3 bonus; Q3 net profit rises 30%

Net profit rose to 2,510 crore during October-December from 1,931 crore a year ago; revenue rose 10.2%; IT services business clocked $2.04 billion in revenues

New Delhi: Wipro today declared a net profit of ₹ 2,510 crore, higher by 29.6% from the same quarter a year ago as profits from sale of a data centre, margin improvement and foreign exchange gains boosted the bottom line. Gross revenues were higher by 10.2% at ₹ 15,059 crore. The company also announced a bonus of one share for every three held. Margins at the level of earnings before interest and taxes improved by 496 basis points on year to 19.8%.

In dollar terms, the company’s net profit came at $360.8 million on revenues of $2.2 billion. The company’s IT services business, its mainstay, clocked $2.04 billion in revenues. This was midway and in line with its revenue guidance of $2.02 billion-$2.06 billion from the IT services business.

The company expects the IT services revenues to be in the range of $2.04 billion-$2.08 billion, a sequential growth of up to 2%.

The company’s share today closed 2.9% higher at ₹ 346.20 on the BSE.

During the quarter, the company concluded the divestment of its hosted data centre business in Singapore and the United Kingdom. It booked gains of ₹ 281 crore on the sale.

The company also registered gains of ₹ 91 crore in foreign exchange as the dollar strengthened against the rupee. The foreign exchange gain last time was ₹ 12.5 crore.

During the quarter, the company carved out its business from the government and public sector into a separate segment. The rest of the India enterprise business would continue to be part of its IT services segment. The company is now organized into the following operating segments: IT services, IT products and India state-run enterprises.

The company’s rivals, Tata Consultancy Services and Infosys, had earlier reported their quarterly earnings. TCS’s October-December consolidated net profit came 24% higher from a year ago to ₹ 8,105 crore on revenues of ₹ 37,338 crore. Infosys had reported 30% lower net profit year-on-year at ₹ 3,610 crore for the December quarter. Its revenues rose 20% to ₹ 21,400 crore.