Wipro net up 9 percent in Q3; ups revenue for Q4

Indian IT bellwether Wipro Ltd Friday reported nine percent year-on-year (YoY) growth in net profit at Rs.2,193 crore for third quarter of fiscal 2014-15 and projected higher revenue from IT services for fourth quarter.

"We expect revenue from our IT services to be in the range of $1,814-1,850 million ($1,832 million average) for this quarter (Q4) in dollar terms," the global software major said in a statement here.

Though the outsourcing major gave a similar outlook ($1,825 million average) for quarter under review (Q3), revenue fell short of its projection to $1,795 million due to the impact of cross currencies in a volatile forex market during the last three months.

Sequentially, net profit increased 5.2 percent in rupee terms from Rs.2,085 crore in second quarter.

Total revenue for the quarter (Q3) grew six percent YoY to Rs.11,993 crore and 2.6 percent sequentially from Rs.11,684 crore in Q2.

Under the International Financial Reporting Standard (IFRS), net income increased nine percent YoY to $348 million and 3.3 percent sequentially from $337 million.

Though gross income (revenue) grew six percent YoY to $1.9 billion, it was flat sequentially.

Revenue growth from IT services business was seven percent YoY at $1,795 million and 1.3 percent up sequentially from $1,772 million.

In rupee terms, revenue from IT services grew 10 percent YoY to Rs.11,345 crore and 3.8 percent sequentially from Rs.10,924 crore quarter ago.

Unlike its rival Infosys, Wipro does not give revenue guidance for the fiscal.

"Developments in the global currency and commodity markets are affecting major economies unevenly, even as India anticipates growth, led by next-generation of economic reforms," Wipro chairman Azim Premji said in the statement.

Operating margin from IT services business declined to 21.8 percent in Q3 from 23 percent in same period year ago and marginally from 22 percent quarter ago.

"We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum, as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies," Wipro CEO T.K. Kurien said.

The city-based company added 44 clients during the quarter, as against 50 quarter ago and 42 year ago, taking the total number of active customers to 1,018, same as quarter ago but against 966 an year ago.

"We saw all-round growth during the quarter, especially in healthcare and life sciences business and global infrastructure services," Wipro chief financial offier Suresh Senapaty said in the statement.

Share of fixed price contracts increased to 55 percent of engagements in quarter three.

The IT services business added 2,569 people during the quarter, taking its total to 156,866 employees from 154,297 quarter ago and 146,402 year ago.

Attrition rate increased on annualised basis to 16.5 percent from 14.3 percent year ago though it remained sequentially unchanged from quarter ago.