|
|
Wipro net up 6% in Q2
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 18 Oct, 2017
Software major Wipro on Tuesday reported a Rs 2,190 crore net profit for
the second quarter (Q2) of fiscal 2017-18, posting 6 per cent annual
growth from Rs 2,074 crore in the like period year ago and 5.3 per cent
sequential growth from Rs 2,080 crore a quarter ago.
In a
regulatory filing on the BSE, the IT major said gross revenue for the
quarter under review (Q2) at Rs 13,420 crore was 2.5 per cent decline
from Rs 13,766 crore in the same period year ago and and 1.5 per cent
lower from Rs 13,630 crore quarter ago.
Under the International
Financial Reporting Standards (IFRS) or in dollar terms, net income for
the quarter was $336 million and gross income $2.1 billion.
Revenue
from its global IT services at $2,014 million was 5.1 per cent up
annually from $1,916 million in same period year ago and 2.1 per cent up
quarterly from $1,972 million quarter ago under IFRS and Rs 13,172
crore under the Indian Accounting Standard.
Revenue from IT services in dollar terms at $2,014 million was above the guidance of $1,962-2,001 million given in July.
"We
surpassed the milestone of $2 billion in quarterly revenues for IT
services on the back of rigorous execution of our strategy," said Wipro
Chief Executive Abidali Z. Neemuchwala in a statement later.
Revenue from IT products for the quarter was Rs 300 crore ($46 million).
Operating
margin for IT services increased marginally to 17.3 per cent from 16.8
per cent quarter ago but dipped 0.3 per cent from 17.8 per cent year
ago.
The company has projected revenue from IT services business
in the range of $2,014-2,054 million for the third quarter
(October-December) of this fiscal (FY 2018).
"Our third quarter
outlook has the seasonal impact of furloughs and higher leaves. Adjusted
for the seasonality, we are seeing an improvement in growth trajectory
in Q3 compared to Q2 and we are on a trajectory to match industry growth
rates in Q4 of this fiscal," said Neemuchwala.
Though new
customer acquisition declined to 41 in Q2 from 45 quarter ago and 47
year ago, the total number of active clients increased to 1,274 in Q2
from 1,244 quarter ago and 1,180 year ago, with better retention and
99.2 per cent repeat business from them.
"Our unique Digital
capabilities powered growth in top clients and position us well to drive
our clients' digital transformation," added Neemuchwala.
Chief
Financial Officer Jatin Dalal said productivity gains generated by
Holmes automation software and operational efficiencies overcame the
impact of wage hikes and expanded margin to 17.3 per cent.
"Our
demand commentary is unchanged, as we see strength in BFSI (Banking,
Financial Services and Insurance) backed by strong digital capabilities.
ENU (Energy & Utilities) is stable, with performance impacted by
slower growth in the Gulf region," said the CEO.
Digital revenues
in Q2 constituted 24 per cent of revenues, driven by shifts of projects
from traditional areas to digital in our larger clients.
The
company enhanced its design and advisory capability in North America
through the acquisition of Cooper, a design and business consultancy.
"We
see continued progress in India business restructuring. Healthcare
continues to be volatile due to concerns around Affordable Care Act
although we are hopeful of revenues bottoming out in Q3. Communications
business is challenged by project completions," added Neemuchwala.
The
total number of employees declined 3,031 sequentially to 163,759 at the
end of Q2 from 166,790 quarter ago but was up 3,968 annually from
159,791 year ago.
Locals account for 52 per cent of the company's
US workforce. An innovation centre was set up on the west coast at
Mountain View in California to co-innovate with customers.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|