Wipro Q3 profit falls 2.2 per cent to ₹2,456 crore

A buyback programme and a slowdown in the financial sector have pulled down the third-quarter net profit of the country’s third-largest IT services company, Wipro, by 3.8 per cent to ₹2,456 crore on a sequential basis.

The company’s CFO Jatin Dalal said the depletion of cash following the buyback programme and a slowdown in capital markets impacted the net profit. Revenues rose 2.3 per cent sequentially in Q3 FY20 to ₹15,470.5 crore while the operating margin grew 0.3 per cent to 18.4 per cent on a quarter-on-quarter basis.

Wipro also guided for the next quarter ending March 31, 2020. It expects revenues from its services business to be in the range of $2.09 billion to $2.13 billion ($2,095 million to $2,137 million).

This translates into a sequential growth of 0-2 per cent, with the upper end of the guidance slightly below Street estimates.