Wipro Q3 net profit up 1.8% to Rs 2,234.1 crore

Bengaluru: Country's third largest software services firm Wipro on Monday posted 1.8 percent rise in its consolidated net profit to Rs 2,234.1 crore for the quarter ended December 31, 2015.

The company-had posted a net profit of Rs 2,192.8 crore in the year-ago period. The City-based firm saw revenues rising 7.1 percent to Rs 12,951.6 crore in the said quarter from Rs 12,085.1 in the same period last year, according to a filing on the BSE.

Its IT services revenues stood at Rs 12,310 crore (USD 1.86 billion), an increase of 9 percent year-on-year, it said. The company had already warned of a muted performance in this quarter on account of furloughs and Chennai-floods. It had said it expected to meet the lower half of its guidance range of USD 1,841-1,878 million.

For the fourth quarter, Wipro expects its revenues from the IT services business to be in the range of USD 1,875 million to USD 1,912 million. "We delivered revenues in line with our guidance.

We saw a pick-up in large deal closures led by global infrastructure services," Wipro Member of the Board and CEO T K Kurien said. He added that customers want to simplify operations and optimise their IT spend and that the company is well- positioned to take advantage of this trend.

Wipro Chief Financial Officer Jatin Dalal said the impact on revenues from the Chennai floods were minimised significantly by execution of Business Continuity Plans (BCP). "The additional expenses incurred in deploying BCP impacted operating margins for the quarter," he added. The IT services segment had a headcount of 1,70,664 as of December 31, 2015.

It added 39 new customers during the quarter. "We are focussed on driving market share growth in our core businesses through integrated domain and technology services, while investing for the future in building differentiated Digital capabilities," Wipro CEO-Designate Abidali Z. Neemuchwala said.

Wipro's IT products segment delivered Revenue of Rs 6.5 billion (USD 98 million) for the quarter ended December 31, 2015.