The Economic Times daily newspaper is available online now.

    Top five takeaways from Wipro Q3 earnings

    Synopsis

    Wipro Ltd reported earnings for the quarter ended December 31 on Monday which was largely in-line with analyst expectations.

    ET Online
    NEW DELHI: Wipro Ltd reported earnings for the quarter ended December 31 on Monday which was largely in-line with analyst expectations.

    Back in December last year, Wipro had earlier issued a warning for its Q3 performance, citing the disruption to key operations and personnel in Chennai due to the worst rainfall in the city in over a decade.

    "We delivered Revenues in line with our guidance. We saw a pick-up in large deal closures led by Global Infrastructure Services. It is becoming increasingly clear that customers want to simplify operations and optimize their IT spend while investing in Digital to transform their business. We are well-positioned to take advantage of this trend," said T K Kurien, Member of the Board & Chief Executive Officer of Wipro in a note.

    We have collated list of five takeaways from Wipro Q3 results:

    Net profit:

    The Group posted a net profit after taxes of Rs. 2,234 crore for the quarter ended December 31, 2015, compared to Rs. 2192 crore reported in the quarter ended December 31, 2014, an increase of around 2% year-on-year.

    Dividend:

    Wipro Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 18, 2016 approved an interim dividend of Rs. 5 per equity share of par value Rs.2/- each to the members of the Company. The payment date for interim dividend will be made on or before February 2, 2016.

    Outlook for March Quarter - Guidance:

    Wipro expects revenues from their IT Services business to be in the range of $ 1,875 million to $1,912 million. The guidance would provide a glimpse on what to expect for the next financial year.

    IT Services Segment:

    IT services segment Profit rose to Rs 2,480 crore ($375 million1), while margins stand at 20.2%.IT services segment Non-GAAP constant currency revenue in dollar terms grew 1.4% sequentially and grew 6.3% YoY.

    The IT Services segment had a headcount of 170,664 as of December 31, 2015. We added 39 new customers during the quarter.

    Large deals:

    On December 23, 2015, Wipro announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry.

    Wipro sustained its momentum in winning Large Deals globally as described below - Wipro has entered into a multi-year global infrastructure support engagement with one of the largest medical devices companies in the world.

    Wipro will standardize and simplify the customer's IT infrastructure across multiple service lines and in over 90 countries.

    "During the quarter, we have built competitive differentiation through the acquisition of two high-potential companies - cellent and Viteos," said Jatin Dalal, Chief Financial Officer of Wipro.

    "The impact on revenues from the Chennai floods were minimized significantly by strong execution of our robust Business Continuity Plans (BCP). The additional expenses incurred in deploying BCP impacted operating margins for the quarter," he added.



    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in