Wipro profit falls 21 per cent

Wipro on Wednesday missed Street estimates when it reported a 21 per cent fall in consolidated net profits for the quarter ended June 30. The Bangalore-based company reported a net profit of Rs 2,563.6 crore against Rs 3,242.6 crore in the year-ago period. Analysts were expecting the firm to report net profits of around Rs 2,900 crore.

The period saw its revenues growing to Rs 21,528.6 crore from Rs 18,252.4 crore — an 18 per cent increase. Brokerages such as Sharekhan had projected the revenues at Rs 21,733 crore. Wipro added that the IT Services revenue was at $2735.5 million. In the preceding quarter, the company had projected that the IT services revenue will come in the range of $2,748-2,803 million.

For the quarter ending September 30, it expects this to come in a range of $2,817-2,872 million, which translates to a sequential growth of 3-5 per cent. IT services companies have disappointed so far with firms like Tata Consultancy Services falling short of analyst expectations on margins and dollar revenue growth. Though brokerages say that the demand environment remains strong, they are cautioning of some slowdown in demand as central banks hike interest rates to control inflation.