Wipro Q3 net profit dips 2.17% to `2,456 cr

New Delhi: IT services major Wipro on Tuesday posted a 2.17 per cent dip in consolidated net profit to Rs 2,455.9 crore for the December 2019 quarter, and estimated up to 2 per cent revenue growth for the fourth quarter.

Wipro's net profit, attributable to shareholders, in the year-ago period was Rs 2,510.4 crore.

Its revenue from operations grew 2.7 per cent to Rs 15,470.5 crore during the period under review from Rs 15,059.5 crore in the same quarter last year (as per Ind-AS). Earnings per share (EPS) for the quarter was Rs 4.3 per share and grew 3.2 per cent year-on-year.

The Bengaluru-based company's numbers came days after larger rival Infosys announced an almost 24 per cent jump in net profit, and 7.9 per cent rise in revenue. Infosys had exuded confidence in the demand environment and raised its revenue outlook for 2019-20 in constant currency to 10-10.5 per cent.

On Tuesday, Wipro, which gets bulk of its topline from IT services, said it expects revenues from that unit to be in the range of $2,095 million to $2,137 million in the March quarter. This translates into a sequential growth of flat to two per cent.

Wipro's IT services segment revenue was at $2,094.8 million in the December quarter, a sequential growth of 2.2 per cent. This is in line with its outlook of $2,065 million to $2,106 million guided earlier.

"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," Wipro CEO and Managing Director Abidali Z Neemuchwala said.

He added that in financial services, Wipro saw a slowdown in growth rates due to continued softness driven by the macro-economic environment.

"We however remain confident on winning the new deals that we are participating in leveraging our strong capabilities in digital," he said.

Neemuchwala said "the overall demand environment has neither improved nor deteriorated, but we see some level of uncertainty due to the various geo political risks at

play".

While the BFSI (banking, financial services and insurance) segment has seen some softness, Wipro remains confident of the deal pipeline. The company added 4 accounts to over $100 million accounts.