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Wipro Q3 net climbs 5%, sees Q4 IT revenue at $1.81-1.85 bn

The News International Team

Wipro ‘s third quarter profit (from IT services and products business) jumped 5 percent sequentially to Rs 2,203.1 crore.

“We saw all round growth led by growth in healthcare & life sciences business and global infrastructure services,” said Suresh Senapaty, executive director & chief financial officer.

IT services revenue rose 3.9 percent to Rs 11,344 crore in October-December quarter and dollar revenues increased 1.3 percent to USD 1.795 billion on sequential basis.

Revenues beat street expectations as a CNBC-TV18 poll had estimated revenues at Rs 11,070 crore and dollar revenues at USD 1.785 billion for the quarter.

Constant currency IT services revenue in dollar terms grew 3.7 percent sequentially (up 9.7 percent year-on-year) to USD 1.84 billion, which was within the company’s guidance range of USD 1.81-1.84 billion. This constant currency dollar revenue growth was much higher compared to its peers Infosys (2.6 percent) and TCS (2.5 percent).

The software services exporter expects IT services dollar revenue in the range of USD 1.81-1.85 billion for the March quarter of current financial year 2014-15, implying 1-3 percent growth over third quarter.

“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 as well as save costs in the traditional business,” said TK Kurien, executive director & chief executive officer.

He sees growth going ahead driven by retail and manufacturing. However, according to him, one area of caution is oil & gas industry as he expects plunge in crude prices to impact discretionary spends.

He remain focussed on building digital story going ahead as Wipro won 10 deals in digital space in Q3.

Wipro in total added 44 new customers in IT services segment in Q3FY15, which included companies like Levi Strauss & Co, Cairn India, IDFC etc.

Earnings before interest and tax (EBIT) during the quarter jumped 2.8 percent quarter-on-quarter to Rs 2,470 crore while margin declined marginally to 21.8 percent against 22 percent in the previous quarter.

Consolidated total revenues of the company grew 2.3 percent sequentially to Rs 12,085.1 crore and profit rose 5.2 percent to Rs 2,192.8 crore during the quarter, said the statement.

Meanwhile, Wipro said Suresh Senapaty, the current chief financial officer and executive director of the company will retire on attaining the age of superannuation on March 31, 2015. It has completed a distinguished career spanning over three decades with the company.

Jatin Dalal, currently senior vice president – finance will take over the role of CFO, effective April 1, 2015, it added.

The IT company has declared an interim dividend of Rs 5 per equity share to the members today. The payment date for interim dividend is fixed as February 02, 2015.

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