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Wipro net down annually, sequentially in Q3
Bengaluru, January 14, 2020
Global software major Wipro on Tuesday reported Rs 2,463 crore consolidated net profit for the third quarter of fiscal 2019-20, registering a 3.2 per cent annual decline from Rs 2,545 crore in the same period a year ago.
Sequentially, too, the city-based IT firm's net declined 3.8 per cent to Rs 2,463 crore from Rs 2,561 crore a quarter ago.
In a regulatory filing on the BSE, the company said its consolidated revenue from operations for the quarter under review (Q3), however, grew 2.7 per cent annually to Rs 15,470 crore from Rs 15,060 crore in the like period a year ago and 2.3 per cent sequentially from Rs 15,126 crore a quarter ago.
Under the International Financial Reporting Standards (IFRS), net income for the quarter is $345 million and gross revenue $2.2 billion or $2,200 million.
"Revenue from IT services business for the quarter grew 1.8 per cent annually to $2,095 million from $2,047 million year ago and 2.2 per cent sequentially from $2,049 million a quarter ago," said the firm in the filing.
Operating profit for the quarter also declined 5 per cent annually to Rs 3,079 crore from Rs 3,241 crore a year ago and 1.8 per cent sequentially too from Rs 3,135 crore a quarter ago.
"Operating margin for the quarter also declined to 18.4 per cent annually from 19.8 per cent a year ago but marginally up (0.3 per cent) sequentially from 18.1 per cent a quarter ago," the company said in the filing.
Wipro also declared an interim dividend of Re 1 or 50 per cent per equity share of Rs 2 face value for fiscal 2019-20.
"We have delivered a good quarter with secular growth across business units, geographies and practices. We remain focused on deepening customer relationships, converting our funnel and winning large deals," said Wipro Chief Executive Abidali Neemuchwala in a statement.
The company has projected higher revenue from IT services in the fourth quarter (January-March) of this fiscal, translating into a 2 per cent sequential growth from that of third quarter.
"We expect revenue from our IT services to be in the range of $2,095-$2,137 million in the fourth quarter ending March 31," added Neemuchwala.
The company's IT products business, which is largely in India, Asia and the Gulf region, suffered Rs 140 crore ($1.96 million) during the quarter, with Rs 260 crore ($36 million) revenue.
"We expanded operating margins by 0.3 per cent aided by a favorable movement in the currency. We also generated strong operating cash flows at 124 per cent of our net income," said Chief Financial Officer Jatin Dalal.
The company's India state-run enterprises (ISRE) also incurred Rs 530 crore loss ($7.4 million), generating Rs 180 crore ($25.9 million) revenue for the quarter.
The IT services business added 77 clients during the quarter as against 57 a quarter ago and 41 a year ago, taking the total their total number to 1,070 from 1,027 a quarter ago and 1,060 a year ago.
The company hired 5,865 software engineers during the quarter taking the headcount of services business to 187,318 from 181,453 a quarter ago and 174,850 a year ago.
"We have hired 12,468 techies in the first 3 quarters of the fiscal (2019-20), added the statement.
On the employee retention front, attrition declined to 12.5 per cent in the quarter from 16 per cent a quarter ago and 17.9 per cent a year ago.
The company's blue-chip scrip of Rs 2 face value gained Rs 2.25 per share to end at Rs 257.15 at the end of Tuesday's trading on the BSE as against Monday's closing rate of Rs 254.90 and opening price of Rs 257.