Wipro's Q2 net profit drops nearly 14% to Rs1,889 cr
25 Oct 2018
Wipro Ltd has reported a 13.8 per cent drop in its fiscal second quarter net profit at Rs1,889 crore, on the back of higher costs and lack of business from state-run organisations for its IT services business.
Wipro, India’s fourth-largest software services exporter, had reported a net profit of Rs2,191.80 crore in the same quarter of the previous fiscal.
Expenses rose over 13 per cent to Rs12,628 crore.
Wipro said it expected revenue from its key IT services business for the quarter ending 31 December to be in the range of $2.03 billion to $2.07 billion.
The company will separate its Indian PSU and government business from the IT Services segment in the results for the current quarter, it said in a statement on Wednesday.
The enterprise business in India will remain in the IT services segment, Wipro added.
Revenue from IT services grew 9.2 per cent to Rs14,377 crore in the second quarter.
On company’s performance, CEO, Abidali Z Neemuchwala said: “Wipro has delivered a strong quarter on both revenue and margin growth. We won our largest deal to date and four of our business units grew over 4 per cent sequentially in constant currency terms. The demand environment is robust, especially for digital transformation and enterprise scale modernization services.”
Wipro, meanwhile, also announced that it has appointed former State Bank of India chairman Arundhati Bhattacharya as an independent director beginning 1 January 2019.