Wipro Reports Net Profit Of Rs 1,889 Crore In Q2, Misses Analysts' Estimates

IT major Wipro on Wednesday reported a net profit of Rs 1,889 crore for the July-September period. That marked a nearly 11 per cent decrease from the net profit of Rs 2,121 crore registered in the previous quarter, and a nearly 14 per cent fall from the net profit of Rs 2,192 posted in the quarter ended September 31, 2017. The net profit for the second quarter of the current fiscal year fell short of expectation of a net profit of Rs 2,100 crore by 24 analysts, news agency Reuters reported citing Refinitiv Eikon data.

Revenue from operations stood at Rs 14,541 crore in the quarter ended September 30. At Rs 14,377 crore, revenue from IT services increased 9.2 per cent on a year-on-year basis.

Higher expenses dented the net profit for Wipro in the September quarter. Total expenses rose 13 per cent to Rs 12,628 crore in the second quarter of 2018-19, from Rs 11,165 crore in the corresponding period a year ago.

Wipro said it will separate its PSU and government business from the IT services segment in the results for the current quarter. The enterprise business in the country will remain in the IT services segment, the software services exporter noted.

Shares in Wipro closed 0.7 per cent lower at Rs 307.10 apiece on the NSE, ahead of the earnings announcement by the company. The shares under-performed the markets, which moved higher after four consecutive days of losses.

In a separate statement, Wipro announced appointment of top banker Arundhati Bhattacharya as independent director to its board.

(With agency inputs)