Wipro logs out of profit zone; quarterly net dips 6.7% to Rs 2,059 cr
The company had reported a net profit of Rs 2,207.4 crore in the year-ago period, Wipro said in a statement. Its total income from operations rose 10.7 per cent to Rs 13,697.6 crore for the said quarter, from Rs 12,370.6 crore in the April-June 2015 quarter. The firm’s IT services revenues, which account for a substantial chunk of the pie for the city-based firm, saw a sequential growth of 2.6 per cent to $1,931 million in the said quarter, meeting its revenue guidance of $1,901 million to $1,939 million.
For the July-September 2016 quarter, Wipro expects its IT services revenues to be in the range of $1,931 million to $1,950 million. The IT services segment had a headcount of 1.73 lakh as of June 30, 2016. Revenues from IT products stood at Rs 590 crore. “We have delivered revenues in line with our guidance. We expect the trajectory of growth to build gradually over the course of the year as we drive execution on our strategic themes and make progress towards achieving a sustainable growth trajectory,” Wipro CEO Abidali Z Neemuchwala said.
Chief Financial Officer Jatin Dalal said the IT services margin, at 17.8 per cent in the said quarter as against 19.7 per cent in January-March 2016, reflected the investments in rewarding employees as well as impact of consolidation of acquisitions for the full quarter. “We continue to expand the reach of our automation programmes to harness efficiency gains,” he added. Wipro said it has decided not to proceed with the buyout of Viteos Group due to “inordinate delays in completion of closing conditions that exceeded the target closing date”.
Mitsubishi Elevators sets up new plant near B’luru
Mitsubishi Elevators and Escalators, a subsidiary of Tokyo-headquartered Mitsubishi Electric, on Tuesday inaugurated a new plant near Bengaluru. “The new facility, in Vemgal near Bengaluru, spread across 89,000 square metres, will have a manufacturing capacity of 5,000 units of elevators annually. The first unit is scheduled to be delivered in December 2016,” a statement said. The company expects to strengthen its market the frim’s statement added.