Wipro Q4 results: Profit falls 6% YoY to Rs 2,345 crore; firm refrains from offering Q1 guidance

NEW DELHI: IT major Wipro on Wednesday reported a 6 per cent year-on-year fall in profit at Rs 2,345.20 crore for March quarter compared with Rs 2,493.90 crore in the corresponding quarter last year.

Analysts in an ET NOW Poll had projected the figure at Rs 2,356 crore.

Revenue for the quarter rose 4.7 per cent YoY to Rs 15,711 crore from Rs 15,006 crore in the year-ago period.

Operating margin for the quarter came in at 17.6 per cent, down 0.8 per cent QoQ.

"We estimate that the IT services revenues for the quarter ended March 31, 2020 were negatively impacted by Covid-19 by $14 -$16 million (0.7-0.8 per cent of revenue)," the IT firm said.

Due to the uncertainty around the course of the pandemic, the company said it did not have visibility into the extent to which the coronavirus will disrupt operations, and thus decided not to provide revenue guidance for the quarter ending June 30.

"We anticipate that we will resume providing revenue guidance when we have increased certainty of both demand and supply side factors," the company added.

IT services revenue for the quarter came in at $2.07 billion, down 1 per cent sequentially. In constant currency terms, revenue rose 0.4 per cent.

“The quarters ahead seem challenging and require a tremendous response on costs. We also anticipate our working capital to increase, but our strong balance sheet provides us the confidence that we will emerge stronger and better. Further, due to the volatility in the external environment, we have decided not to provide a quarterly guidance on revenues,” said Jatin Dalal, Chief Financial Officer.

The company’s board also did not recommend final dividend.

CEO and Managing Director Abidali Neemuchwala said: “We are confident that our broad portfolio of services and our ability to execute to our commitments makes us well-positioned to gain market share.”