Wipro's Q3 net profit drops 6%; revises Q4 guidance
IT major Wipro on Wednesday announced its financial result for the quarter ended on December 31. Beating the estimates, the company reported a net profit of Rs 2,110 crore, a drop of 5.6% as against Rs 2237.1 crore during the same period last year.
The company's gross revenues were Rs 13,690 crore, a rise of 6.4% on year-on-year basis.
“Our bold investments in Digital, BPaaS and cloud applications position Wipro as the partner of choice for the Digital businesses of our clients. Digital eco-system grew by 9.9% sequentially in the quarter and now constitutes 21.7% of our revenues”, said Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board.
“In the last year, we have invested almost $1 billion in acquisitions, made 6 investments through Wipro Ventures, funded 8 ideas through our Horizon program, and continued to invest aggressively in our cognitive platform, Wipro HOLMES and in our stated localization strategy.”
Giving the guidance the company said that they expect revenues from our IT Services business to be in the range of $ 1,922 million to $ 1,941 million.
The company also signed an agreement to acquire InfoSERVER for $8.7 million. InfoSERVER is focussed on the Brazilian market, provides custom application development and software deployment services.
Jatin Dalal, Chief Financial Officer, said, "We expanded operating margins by 50 basis points in a seasonally weak quarter and generated strong operating cash flows by disciplined execution. We are significantly leveraging HOLMES, our automation suite to drive efficiencies in our operations.”