Wipro Q1 numbers in line with estimates

Wipro, India's third-largest information technology (IT) services company, on Thursday posted its financial numbers for the first quarter of 2015-16 that were largely in line with the estimates. It gave a much better revenue growth outlook for the September quarter.

In the quarter ended June, the company, which counts Citigroup and BP among its clients, posted a four per cent rise in its net profit to Rs 2,187.8 crore when compared with the corresponding quarter in 2014-15. The revenue at Rs 12,237 crore rose 10 per cent. On a sequential basis (compared with the previous quarter), net profit declined 3.7 per cent while revenues was largely flat when compared with Rs 12,142 crore in Q4 of FY15.

The company's IT services business that accounts for a major chunk of its overall revenue grew 10 per cent to Rs 11,577.3 crore on a year-on-year basis, while the operating profit at Rs 2428 crore grew one per cent. Wipro does not give the net profit figure of its IT services business. On sequential basis, the revenue went up three per cent, while the operating profit declined over two per cent mainly on pricing pressure and investment it is putting back into the business.

For the quarter ending September, Wipro said it was expecting its IT services revenue to be in the range of $1,821-1,857 million, implying a growth of 1.5 per cent to 3.5 per cent. "We see a pick-up in momentum in Q2 as reflected in our guidance and we expect second half of the year to be better than first," chief executive T K Kurien said.