Wipro Q3 profit drops 3.2% to Rs 2,463 crore on low interest income

IT firm Wipro on Tuesday largely met Street’s Q3 FY20 estimates with the firm posting growth in revenues and operating margin. However, net profit at Rs 2,463 crore came below the analysts’ expectations, a decline of 3.2 per cent when compared with the year-ago quarter. On a quarter-on-quarter basis, net profit declined 2.33 per cent. The firm attributed this to lesser interest income owing to cash outgo as part of its buyback programme.

During October-December period, consolidated revenues of the company rose 2.7 per cent on a year-on-year (YoY) basis at Rs 15,470 crore. In dollar terms, gross revenues of the company were at $2.2 billion.

In the IT services segment, which accounts for more than 95 per cent of Wipro’s gross revenues, the company reported 3.3 per cent rise in revenue at $2.094 billion on YoY basis in constant currency terms. Sequentially (compared with the trailing quarter), the IT services’ revenue growth was 1.8 per cent.