Wipro Q2 net profit falls by 8%

India’s third largest IT exporter Wipro’s net profit fell 8 per cent to Rs. 2,070 crore for the second quarter ended September 30 compared to the same period a year ago.

The total revenue for the period rose 10 per cent to Rs.13,766 crore.

Wipro’s flagship business IT services business revenue stood at Rs.13,137 crore while the IT services segment profit was Rs.2,340 crore, a decrease of 5 per cent when compared to same period last year. The company expects its revenue from IT services to be in the range of $1,916 million to $1,955 million for the third quarter ending December 31, 2016.

Abidali Neemuchwala, Chief Executive Officer and Member of the board said: “We delivered revenues in constant currency at the top end of our guidance range. The demand environment for IT services industry is evolving fast. As tech spends increasingly transfer from run bucket to change bucket the IT services industry is experiencing significant transition.”

The IT Services segment had a headcount of 174,238 people as of September 30,2016. IT services margin was 17.8 per cent for the quarter. Wipro Ventures the venture capitalist arm of Wipro has so far made 8 investments with a committed spend of around $22 million. “Our margins was flat in Q2. We maintained margins in Q2 despite the impact of salary increase for an incremental two months due to strong operational improvements in automation-led productivity, offspring and utilization,” said Jatin Dalal, Chief Financial Officer, Wipro.

[Source:-The Hindu]