Wipro, the leading Software services provider of the Country has reported a 0.9 per cent growth in consolidated profit at Rs 2,070.4 crores for the second quarter (July to September) on sequential basis. Consolidated revenue during the quarter increased 1.5 per cent to Rs 13,896.8 crores compared with Rs 13,697.6 crores in preceding period. Dollar revenue from IT services segment, that the street closely tracks, declined 0.8 per cent quarter-on-quarter to US$ 1,916.3 million in September quarter but grew by 0.9 per cent in constant currency.
“We delivered revenues in constant currency at the top end of guidance range,” commented Abidali Z Neemuchwala the chief executive officer in the filing to the regulatory bodies. The company had expected dollar revenue growth of 0 to 1 per cent in constant currency for second quarter of FY17. Dollar revenue missed analysts’ estimates but the same in constant currency was slightly above expectations. According to an analysts’ poll, dollar revenue growth estimated at 0.4 per cent and constant currency at 0.5 to 0.7 per cent for the quarter while the rupee revenue growth expected at negative 1.5 per cent.
IT services revenue in rupee terms grew by 0.2 per cent quarter-on-quarter to Rs 13,136 crores in the second quarter. Wipro expects its revenues from IT services business to be in the range of US$ 1,916-1,955 million for October-December quarter, a growth of 0-2 per cent for the quarter ended 30th September 2016. The above mentioned guidance was lower than analysts’ expectations of 1 to 3 per cent growth for the quarter. Neemuchwala expects to see more uncertainty in US after the presidential elections. IT services EBIT (earnings before interest and tax) increased 0.4 per cent quarter-on-quarter to Rs 2,337.2 crores during the quarter.
EBIT margin remained unchanged at 17.8 per cent on sequential basis, which was ahead of estimates of 17.04 per cent, due to operational efficiency. Headwinds in salary increases were offset by strong operational improvements in automation-led productivity, offshoring and utilization improvements.
Jatin Dalal the chief financial officer said demand environment is mixed in a kind of seasonally weak quarter affected by furloughs and lower number of working days. Business units – Healthcare, life sciences & services grew 4.3 per cent and energy, natural resources & utilities 1.3 per cent on a constant currency basis sequentially. America business during the quarter under review registered a 1.8 per cent growth and Europe 0.3 per cent on a constant currency basis sequentially while Asia-Pacific and other emerging markets along with India & Middle East business declined 0.1 per cent and 1.1 per cent, respectively.
The company announced during the quarter digital ecosystem revenue contribution was 19.6 per cent and consulting ecosystem 5 per cent to total revenue. Gross utilization in Q2 improved to 71.2 per cent from 69.9 per cent and net utilization (ex-trainees) to 82.8 per cent from 79.7 per cent on sequential basis. Wipro has signed a definitive agreement on Thursday to acquire Appirio, which is a global cloud services firm, for a purchase consideration of US$ 500 million. The acquisition is expected to be closed by the month of December 2016. “This acquisition will establish Wipro’s dominance in cloud application services and further strengthen Wipro’s brand as a digital partner of choice,” Neemuchwala said.
This result was declared after the market hours on Friday when Wipro share price already closed at Rs 499.20 apiece on NSE, up by 0.73 per cent.
No comments:
Post a Comment