Q3 comment | Wipro PAT shrinks 4 per cent q-o-q, while revenues rise nearly 2 per cent

In a seasonally weak quarter Wipro posted consolidated net profit of ₹2,463 crore, down 3.8 per cent quarter-on-quarter, due to a rise in employee costs during the quarter ended December 31, 2019. The rise in employee costs was due to the company’s employee strength rising by 5,865 to 1,87,318 during the quarter. Wipro hired 1,891 freshers for its IT services segment during the quarter.

The profits were also hemmed in as other expenses almost doubled to ₹226 crore during the quarter and by a fall in utilisation of employees during the quarter to 79.6 per cent from 82.1 per cent. The fall in utilisation is because the quarter ending December 2019 sees employees taking furloughs. Employee attrition came in at 15.7 per cent, a level not seen in the last seven quarters.