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Wipro Q2 results: Consolidated net profit falls 9.6% QoQ but beats estimate :shivpurinews.in

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MUMBAI: today reported a 9.6 per cent sequential decline in consolidated net profit for the quarter ended September to Rs. 2,930.7 crore, which was still above analysts’ expectations.

The company’s consolidated revenue for the quarter climbed 7.7 per cent quarter-on-quarter to Rs. 19,667.4 crore, which beat Street’s expectations.

The decline in the company’s bottom line in the quarter was driven by higher tax payments and a sharp rise in costs.



For the quarter, the IT services segment recorded sequential growth of 6.9 per cent in US dollar terms to $2.58 billion. The company’s growth in rupee terms in the IT services segment was at 8.1 per cent on quarter, higher than its guidance of 5-7 per cent.

Wipro said that it expects revenues to grow 2-4 per cent in constant currency terms in the December quarter, which was in line with analysts’ expectations.

For the quarter, the IT services segment recorded sequential growth of 6.9 per cent in US dollar terms to $2.58 billion. The company’s growth in constant currency terms in the IT services segment was at 8.1 per cent on quarter, higher than its guidance of 5-7 per cent.

“The Q2 results demonstrate that our business strategy is working well,” said Thierry Delaporte, managing director and chief executive officer at Wipro in a press statement.

The operating performance of the company was sturdy given that it managed to keep the consolidated operating margin for the IT services segment flat sequentially at 17.8 per cent on an adjusted basis. On a reported basis, the margins declined 104 basis points on quarter.

In the reported quarter, employee benefits jumped 8 per cent sequentially reflecting the impact of the wage hike undertaken by the company to improve talent retention. Despite those efforts, the attrition rate jumped to 20.5 per cent in the quarter from 15.5 per cent in the previous quarter.

“We sustained our operating margins in Q2 in a narrow band even after absorbing the full impact of our recent acquisitions and investing significantly in our business across sales, capabilities and talent,” said Jatin Dalal, chief financial officer at Wipro.

Wipro said that it saw broad-based growth across all markets, sectors and global business lines. The company’s added two more clients in the $100 million-plus category and two more in the $50 million-plus bracket.

Shares of the company ended 2 per cent higher at Rs. 672.4 on the National Stock Exchange.

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