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Wipro Q2 net profit dips to Rs 2143 crore

18 October 2017

The country's third largest software services provider reported a net profit of Rs 2,192 crore, which marked a 6 per cent rise over Rs 2,067.2 crore in the same period of a year ago.

The quarter also saw good performance from verticals that included financial services and manufacturing & technology.

Analysts had expected the Bangalore-based firm to report a net profit of a little over Rs 2,000 crore.

Revenue from core IT services rose to Rs 13,169 billion rupees from Rs 13,137 billion rupees, slightly above its earlier forecast. In dollar terms, revenues for Q2FY18 were up 2.1% sequentially.

Revenue from its global IT services at $2,014 million was 5.1 per cent up annually from $1,916 million in same period year ago and 2.1 per cent up quarterly from $1,972 million quarter ago under IFRS and Rs 13,172 crore under the Indian Accounting Standard.

"We surpassed the milestone of United States dollars 2 billion in quarterly revenues for IT Services on the back of rigorous execution of our strategy", Abidali Z Neemuchwala, Chief Executive Officer and Member of the Board said.

Revenues from IT services segment, which accounts for a significant portion of the company's topline, stood at $2.013 billion, up 2.1 per cent sequentially.

Second-quarter profit rose 6 percent to Rs 2,192 crore beating analysts' estimate of Rs 2,080 crore, according to Thomson Reuters data. "We see robust demand in all the markets and are confident of meeting the industry growth rates in the fourth quarter", he said.

"Productivity gains generated by HOLMES automation suite and operational efficiencies overcame the incremental impact of wage hikes and expanded IT Services margin to 17.3 percent", Jatin Dalal, Chief Financial Officer said.

"Digital revenues were 24.1 percent of IT services revenues", Wipro said. The Wipro scrip ended Tuesday's trading session at Rs 289.35, virtually flat on the BSE. The only concern, he said, is the healthcare vertical because of uncertainties around Obamacare in the US.

Wipro Q2 net profit dips to Rs 2143 crore