The country's fourth-largest IT company by market capitalisation reported decent growth in services for Q3FY20.
IT major Wipro on January 14 reported a 3.20 percent year-on-year (YoY) fall in its consolidated profit for the quarter ended December 30.
The country's fourth-largest IT company by market capitalisation reported decent growth for services for Q3FY20.
"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," CEO and Managing Director Abidali Z Neemuchwala said.
Here are some key takeaways from Wipro's Q3FY20 scorecard:
Net profit declines
The Bengaluru-based company's consolidated net profit for the quarter was at Rs 2,462.90 crore, down 3.20 percent YoY and 3.84 percent quarter-on-quarter (QoQ).
In Q3FY19, the company reported a net profit of Rs 2,544.4 crore and in Q2FY20 Rs 2,561.2 crore.
Revenue inches up
The company's total revenue climbed 2.73 percent to Rs 15,470.50 crore in the third quarter against Rs 15,059.50 crore in the same period last year.
IT services clock gains
Wipro's IT services revenue stood at Rs 15,100.60 crore for the December quarter, up 3 percent QoQ against Rs 14,656 crore. A CNBC-TV18 poll had estimated it to be around Rs 15,045 crore.
The EBIT for the segment climbed 4.6 percent QoQ to Rs 2,773.2 crore against Rs 2,653 crore in the September quarter.
The EBIT margin rose 30 bps QoQ to 18.4 percent against 18.1 percent in the September quarter.
The segment primarily consists of IT service offerings to customers organised by industry verticals.
The board of directors, in a meeting on January 14, declared an interim dividend of Rs 1 per equity share and ADR (50 percent on an equity share of par value of Rs 2).
Tepid guidanceWipro expects revenue from IT services business to be in the range of $2,095-2,137 million, which translates to a sequential growth of 0-2 percent. The upper end of guidance was slightly below analyst expectations. The guidance for Q4 was expected at 0-2.5 percent, according to the average of estimates of analysts polled by CNBC-TV18.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.