Wipro Q2 results beat analysts with net profit up at Rs1,161.7 crore

IT major Wipro on Tueday, declared its second-quarter results which exceeded analysts' projections with a 14.4 per cent increase in its net profit now standing at Rs1,161.7 crore as against Rs1,015 crore last quarter.

The company's quarterly revenues too were robust on an increase of 10.35 per cent to Rs6,940.2 crore as against Rs6,289.1 crore in the previous quarter.

The company also exceeded its own guidance for the second quarter on revenues which it aimed at $1,035 -1,053 million but ended up achieving $1,050 million.

"We expect revenues from our IT services business to be in the range of $1.09-1.11 billion in the third quarter, as we see more stability in volumes and pricing," Wipro chairman Azim Premji said in a statement.

''Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation,'' he adds in the statement.

In the July-October quarter, major IT companies including Infosys, Wipro and Tata Consultancy Services (TCS) have all turned in excellent results with the latter two doing remarkably well. According to analysts the showing maybe attributed to steadily improving fundamentals among major clients especially in the financial sector abroad but the outlook ahead could be somewhat marred with volatility of the rupee against the US dollar. With revenues of IT companies in dollars a weakening of the dollar impacts the companies' margins.