e-paper
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.