Bengaluru: Wipro Ltd's consolidated profit fell 3.8% on a sequential basis to ₹2,463 crore in the quarter ended December 2019. For the September quarter, the company reported net profit of ₹2,561 crore. On a year-on-year basis, net profit declined by 3.2% from ₹2,545 crore for the year ended December 31, 2018.
Revenue from operations increased sequentially by 2.3% to ₹15,470.5 crore in the December quarter, from ₹15,125.6 crore in the previous quarter. On a year-on-year basis, revenue from operations increased 2.7% from ₹15,059.5 crore last year.
Wipro declared an interim dividend of ₹1 per equity share.
The upper end of guidance was slightly below analyst expectations. The company now expects revenue to grow in the range of $2,095 million to $2,137 million, a 0-2% sequential growth for the January-March quarter.
In dollar terms, revenue from IT Services increased 2.2% sequentially to $2,094.8 million in the December quarter. Constant currency IT Services revenue increased by 1.8% on a Q-o-Q basis.
Abidali Z. Neemuchwala, CEO and Managing Director said, “We have delivered a good quarter with secular growth across all business units, geographies and practices. We remain focused on deepening our customer relationships, converting our funnel and winning large deals."
“We expanded operating margins by 0.3% aided by a favorable movement in the currency. Further, we generated strong operating cash flows led by disciplined execution at 124% of our Net Income," said Jatin Dalal, Chief Financial Officer.
For the quarter ending 31 March, 2020, Wipro expects revenue from their IT Services business to be in the range of $2,095 million to $2,137 million, translating to sequential growth of 0-2% in the January-March quarter.
Neemuchwala said, "In financial services, we saw a slowdown in our growth rates due to continued softness driven by the macro-economic environment....while Tech BU was impacted by furlough and slowdown in spend by consumers in semi-conductor industries."
He added, "The overall demand environment has neither improved nor deteriorated, but we see some level of uncertainty due to the various geopolitical risks at play."
He added that Wipro is confident on winning new deals the company is participating in, in digital and has performed well in the Consumer segment. "ENU and Communications continued to grow moderately. We see a recovery in manufacturing...health saw a seasonal uptick in HPS," he added.