Wipro Q1 Net up 4% to Rs 2,188 cr; Q2 guidance at 1.5-3.5 pc

Country's third-largest software services firm, Wipro today reported four per cent rise in net profit at Rs 2,187.7 crore for the June quarter, broadly in line with street expectations.
The city-based firm, which had reported a net profit of Rs 2,103.2 crore in the year-ago period, said it expects the coming quarters to be better than the April-June, 2015 period.
Its total income rose 10.5 per cent to Rs 12,894.8 crore for the said quarter from Rs 11,669.4 crore in the April-June, 2014 quarter.
The firm's IT services revenue, which constitutes a major share of the firm's total earnings, saw a sequential growth of 1.1 per cent to USD 1.79 billion in the said quarter, meeting its revenue guidance of USD 1,765 million to USD 1,793 million.

"Over all while we are seeing a stable demand environment, large deals are competitive and there is pressure on pricing in new deals. There is significant churn around the nature of technology consumption across the run and change side of the business," Wipro CEO and Member of Board T K Kurien told reporters here.
Wipro expects to see pick-up in momentum in the second quarter as reflected in the guidance and it expects the second half to be better than the first half of the fiscal, he added.

Dipen Shah, Head of Private Client Group Research at Kotak Securities, said Wipro's revenue growth of 0.2 per cent in constant currency terms was slightly lower than estimates.

"Growth was largely impacted by continuing softness in the Energy vertical. However, the Q2 guidance of 1.5-3.5 per cent in slightly ahead of expectations," he said.
For the July-September 2015 quarter, Wipro expects its IT services revenues to be in the range of USD 1,821 million to USD 1,857 million.