Moneycontrol Bureau
Wipro's third quarter consolidated profit declined 0.06 percent to Rs 2,234.1 crore while revenue increased 3 percent to Rs 12,951.6 crore compared to preceding quarter.
The IT services provider's revenue met analysts' muted expectations, rising 2.25 percent to Rs 12,314 crore in quarter ended December 2015 compared to Rs 12,042.8 crore in September quarter. Profit declined 0.8 percent to USD 2,480 billion in same period.
Dollar revenue increased 0.3 percent sequentially to USD 1,838.3 million during the quarter, which too was lower than forecast and company's guidance (of 0.5-2.5 percent), impacted by Chennai floods.
According to average of estimates of analysts polled by CNBC-TV18, rupee revenue was expected at Rs 12,371 crore and dollar revenue at USD 1,842 million.
The country's third largest IT company says it expects dollar revenue in the range of USD 1,875-1,912 million in January-March quarter, a growth of 2-4 percent over third quarter, which matched analysts' expectations.
Operational performance was slightly ahead of estimates. Earnings before interest and tax (EBIT) declined half a percent quarter-on-quarter to Rs 2,482 crore and margin contracted 50 basis points to 20.2 percent in Q3. EBIT was estimated at Rs 2,460 crore with margin at 19.9 percent for the quarter.
"Impact on revenue from Chennai floods were minimised significantly by strong execution of robust business continuity plans (BCP). Additional expenses incurred in deploying BCP impacted operating margins for the quarter," says Jatin Dalal, chief financial officer of Wipro.
Wipro has added 39 customers during the quarter. TK Kurien, chief executive officer says, "We saw a pick-up in large deal closures led by Global Infrastructure Services."
The IT services segment had a headcount of 170,664 at the end of December, increased by 2,268 compared to a year-ago period.
Attrition rate for its BPO business during the quarter declined to 9.9 percent from 10.2 percent on sequential basis. Utilisation rate excluding trainees stood at 78 percent for the quarter against 82.3 percent in preceding quarter.
Wipro completed its transaction to acquire Cellent AG, a German-based IT company, on January 1. On December 23, it signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the alternative investment management industry.
The company has decided to pay an interim dividend of Rs 5 per share for its shareholders.
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