Q4 Results: Wipro’s Profit Meets Estimates, Margin Contracts
Wipro Ltd.’s quarterly profit met analyst expectations even as margin narrowed because of a stronger rupee.
Its net profit fell 1.1 percent over the preceding quarter to Rs 2,483 crore in the January-March period, the country’s third-largest software services provider said in an exchange filing. That compares with Rs 2,489-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 0.7 percent on a sequential basis to Rs 15,161 crore, meeting the Rs 15,069-crore estimate.
Earnings before interest and taxes of the Bengaluru-based company fell 2.7 percent over the previous quarter to Rs 2,701 crore. That’s against the Rs 2,749-crore estimate. Its margin contracted 60 basis points sequentially to 17.8 percent.
Reliance Securities’ Harit Shah said that the earnings are in line with expectations. “But the guidance for the first quarter, which is anyway seasonally weak, seems to be softer than what we were going with."
Wipro’s IT services business generated $2075.5 million in the three-month period. The company had forecast its fourth-quarter IT services revenue to be in the range of $2,047-2,088 million—a sequential growth of 0-2 percent.
The company forecasts its IT services revenue for the quarter-ending June to be in the range of $2,046-2,087 million—a sequential growth of -1 to 1 percent. This, the company said, doesn't include the divestment of its Workday and Cornerstone OnDemand business worth $110 million.
The company's IT services revenue grew 5.4 percent in constant currency terms on a full-year basis.
Shares of Wipro closed 2.36 percent lower ahead of the earnings announcement. The company gained 4 percent in the March quarter, compared with an 8.2 percent rise in the NSE Nifty IT Index during the period.