Wipro Q3 net declines 8.7% to Rs 1930 crore

Wipro Q3 net profit down 8% to ₹1931 crore

IT firm Wipro Ltd posted a surprise fall in third-quarter profit as higher costs weighed.

Total expenses rose 2.2 per cent to Rs 11,830 crore in the quarter.

Standalone revenue from operations stood at Rs 9,952.19 crore in Q3, which declined by 26.66% from Rs 13,569.97 crore in Q3FY17, but was gradually up by 1.93% versus Rs 9,763.92 crore in Q2FY17.

The company's IT services earnings before interest and taxes (EBIT) was reported at Rs 1,959 crore, against Rs 2,278 crore, a drop of 14 percent year on year.

A Bloomberg poll of experts estimated ITC's revenue and net profit to be at Rs 10,600 crore and Rs 2,830 crore in Q3FY18 respectively.

Revenues from IT services segment, which accounts for a significant portion of the company's topline, stood at Dollars 2.013 billion, remaining flat sequentially and up by 5.8 per cent year-on-year.

The company said its IT services margin - at 14.8 per cent - was impacted by a provision of Rs 317.5 crore (USD 49.7 million) made with respect to insolvency of a customer post the balance sheet date.

The company has declared an interim dividend of Re 1 per share.

"We have made strong progress in our client mining with number of clients contributing revenues over $50 million increasing from 33 to 41 in the last one year".

"We have been seeing an improving trajectory of growth over the past four quarters and our fourth-quarter guidance further reflects that", Wipro CEO Abidali Z Neemuchwala said.

Q3FY18 standalone net profit was also up by 17.06% from Rs 2,639.84 crore in the preceding quarter.



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