Tuesday, 25 September, 2018

India's Wipro posts surprise fall in Q3 profit on higher costs

Wipro's Q3FY18 consolidated net profit down 8% yoy misses estimates India's Wipro posts surprise fall in Q3 profit on higher costs
Nellie Chapman | 20 January, 2018, 08:53

On a sequential quarter basis, the net profit has come down by 12%, compared to Rs 2,189 crore in the September quarter of 2017-18.

ITC surpassed analysts' estimates in terms of bottom-line during third quarter ended December 31, 2017 (Q3FY18) performance by reporting almost 17% year-on-year (YoY) growth in standalone net profit.

Standalone revenue from operations stood at Rs 9,952.19 crore in Q3, which declined by 26.66% from Rs 13,569.97 crore in Q3FY17, but was gradually up by 1.93% versus Rs 9,763.92 crore in Q2FY17.

The company posted standalone net profit of Rs 3,090.20 crore in Q3FY18, increasing by 16.75% from Rs 2,646.73 crore in the corresponding period of the previous year.

Gross revenue of Wipro was 136.7 billion rupees or $2.1 billion, slightly lower than 136.88 billion rupees a year ago. Adjusted for this event, IT Services Margin for the quarter was 17.2%, the company said in a statement.

The company has declared an interim dividend of Re 1 per share.

Bengaluru-headquartered Wipro said it expected revenue from the IT services business to be in the range of $2.03 billion-$2.07 billion in the quarter ending 31 March.

"We continued to improve our growth trajectory driven by strong momentum in banking, financial services and insurance (BFSI) and uptick in healthcare", Wipro CEO and Member of the Board Abidali Z Neemuchwala said.

Finance chief Jatin Dalal said that the digital segment, which includes services such as cloud computing, big data and design engineering and now constitutes about a quarter of the company's IT revenue, would remain a key focus area. This has resulted in a total cash outflow of Rs 11,000 crore.