Wipro revenues rise to $1745 million in Q3; meet estimates

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Wipro-revenuesWipro’s IT services revenues for the December quarter rose to Rs.10,330 crore, while profits for the period climbed to Rs. 2,010 crore, the company said in a statement on Friday. Brokers polled by NDTV had estimated India’s third-largest IT services exporter to report net profit of Rs. 1,997 crore on sales of Rs. 10,343 crore.

Dollar revenues for the quarter rose 2.9 per cent sequentially to $1,678.4 million. The company had guided for $1,660-1,690 million in revenue. For the next quarter, Wipro expects dollar revenues at $1,712 million to $1,745 million, implying a growth of 2-4 per cent. Analysts had expected Wipro to guide for 1.5-4 per cent growth in the March quarter.

Operating margins for the quarter stood at 23 per cent, higher than 22.5 per cent Wipro posted in the second quarter.

Analysts said Q3 numbers were in line. Wipro shares, which closed 3.15 per cent lower at Rs. 552.45 today, are likely to rise when markets open next week, they added.

“Our focus on account management has yielded encouraging results… During the quarter, our Global Infrastructure Services business grew strongly on revenues,” T K Kurien, executive director & chief executive officer of Wipro said.

All four big IT firms have now announced their earnings for the December quarter. Infosys and HCL Tech surpassed estimates, but TCS shares fell as much as 6 per cent today after the company reported slower-than-expected revenue growth during October to December.

It’s important to note that the fiscal third quarter is supposed to be tepid for outsourcers because of lesser working days (at client sites) and year-end shutdowns in US and Europe.