Wipro beats Street estimates on revenues; Q2 PAT at Rs 2,070 crore

NEW DELHI: India’s third largest software services company Wipro on Friday posted 8.2 per cent year-on-year drop in net profit at Rs 2,070 crore for the second quarter of this financial ended September 30, 2016.

On a quarter-on-quarter basis , profit grew 0.80 per cent compared with Rs 2,052 crore reported for the June quarter.

The company had reported a net profit of Rs 2,241 crore for the year-ago period.

Total income increased from Rs 13,198 crore for the quarter ended September 30, 2015 to Rs 14,407.3 crore in the quarter ended September 30, 2016.

Earlier in the day, Wipro shares closed 0.7 per cent higher at Rs 499. They hit a low of Rs 493 and a high of Rs 504 during the session.

The company disappointed with its third quarter guidance, which stood at 0-2 per cent against expectation of 1-3 per cent.

Wipro’s IT services revenue, which accounts for a substantial chunk of its business, saw a sequential growth of 0.2 per cent to Rs 13,136 crore for the quarter compared with Rs 13,109 crore reported for the previous quarter and Rs 12,042.70 crore reported for the year-ago period.

"We delivered revenues in constant currency at the top end of our guidance range," said Abidali Z Neemuchwala, Chief Executive Officer and Member of the Board.

"I am very excited about Wipro's acquisition of Appirio, a leader in cloud applications especially across Salesforce and Workday implementation services. This acquisition will establish Wipro’s dominance in cloud application services and further strengthen Wipro’s brand as a Digital Partner of choice," he said.