Wipro net profit up 1.2% at Rs 2,083 crore

Wipro, the country’s third largest software company, on Thursday reported a 1.2 per cent growth in its net profitat Rs 2,083 crore during the first quarter (April- June 2017).

However the company reported a fall of a little over 8 per cent fall quarter-on-quarter (QoQ) for April-June period at Rs 2,077 crore.

Analysts had predicted flattish numbers for Wipro on the back of muted global macro, uncertainty of adverse visa rules in the US and transition of the existing business to new technologies.

The IT major had posted a consolidated net profit of Rs 2,059 crore in the same period last year.

Bengaluru-headquartered Wipro reported consolidated revenue of Rs 13,626 crore, while revenue from its core IT services came in at Rs 13,026 crore.

The IT company has also announced a Rs 11,000 crore buyback which it aims to facilitate by buying 34.3 crore shares for Rs 320 apiece.

Wipro’s earnings before interest and taxation (EBIT) margin stood at 16.8 per cent, slightly higher than Street estimates. The IT giant reported a dollar revenue of $ 1971.7 million, a s over analyst estimates.

“We delivered revenues above the upper end of the guidance range. Our focus on Digital combined with our investments in client mining have resulted in strong growth in Top accounts.” said Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board said in a statement.

Speaking at Wipro’s 71st Annual General Meeting, Wipro chairman Azim Premji on Wednesday had said, “looking ahead, we continue to see volatile economic environment but clients are looking to spend in technology as technology is becoming a major differentiator in all businesses.”

Stating that digital is the central element driving changes in the expectations and experiences of consumers and business models, Premji said, “At Wipro, we strongly believe that our success will depend on our ability to redefine and align ourselves with the new global paradigms and the disruptive developments in our industry.”

“In this context, the company has made significant investments, organic and inorganic, in transforming our business offerings to serve the new demand from clients,” he had added.

 

 

Source: Times Of India

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