Wipro Ltd.’s net profit missed analyst estimates in the October-December quarter as the software services provider made a one-time provision for an insolvent client.
Net profit fell 12 percent to Rs 1,930 crore as compared to the same period last quarter, Wipro said in an exchange filing today. That’s lower than Rs 2,151 crore consensus estimate of analysts tracked by Bloomberg.
The Azim Premji-led conglomerate’s total income rose 6.5 percent sequentially to Rs 1,4295 crore in the quarter, higher than the estimated Rs 13,685 crore.
Revenue in dollar terms from IT services remained flat sequentially at $2013 million. This was marginally lower than $2035 million that the company had forecast. IT services revenue in constant currency terms rose 0.9 percent.
“We continued to improve our growth trajectory driven by strong momentum in BFSI and uptick in healthcare,” Abidali Neemuchwala, chief executive officer of Wipro said in a separate earnings press release. “This is also reflected in our outlook for the next quarter. Our leadership in digital continues to strengthen with over 25 percent of our revenues now coming from digital.”
The IT services margin for the quarter stood at 14.8 percent, impacted by a provision of Rs 317.5 crore it made on account of insolvency of a customer, Wipro said in a separate press release.
The company expects revenue from IT services to be in the range of $2,033 million and $2,073 million in the fourth quarter.
- Earnings before interest and taxes declined 13.2 percent sequentially to Rs 1,959 crore.
- Ebitda margin contracted to 14.3 percent from 16.8 percent earlier.
- The banking, financial services and insurance vertical'’s revenue grew 3.3 percent to Rs 3,777 crore.
- Healthcare segment revenue rose 2.1 percent to Rs 1,846 crore.
- Energy, natural resources and utilities revenue fell 8 percent to Rs 1,643 crore.
- Communications revenue declined 2.1 percent to Rs 843 crore.
- Manufacturing and technology revenue fell 0.4 percent to Rs 3,005 crore.
- Consumer business unit revenue was marginally higher at Rs 2,121 crore.
Shares of Wipro closed nearly 1 percent higher ahead of the announcement of results. The stock has appreciated nearly 12 percent in the October-December period.