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Rediff.com  » Business » Wipro Q2 net profit up 7.2% at Rs 2,235 crore

Wipro Q2 net profit up 7.2% at Rs 2,235 crore

Last updated on: October 21, 2015 17:38 IST

The company's profit rose with better IT spending by global clients and a rise in high margin digital projects.

India's third largest software services firm Wipro on Wednesday reported a 7.2 per cent growth in consolidated net profit at Rs 2,235.4 crore (Rs 22.35 billion) for the second quarter ended September 30, 2015.

The Bengaluru-headquartered firm had posted a net profit (after tax, minority interest and share of profit of associates) of Rs 2,084.8 crore (Rs 20.84 billion) in the year-ago period, the IT firm said in a statement.

Net sales rose by 6.3 per cent to Rs 12,566.8 crore (Rs 125.66 billion) in July-September quarter this fiscal from Rs 11,816 crore (Rs 119.16 billion) in the same period a year ago, it added.

In dollar terms, the revenue from IT services registered a quarter-on-quarter growth of 2.1 per cent at $1.83 billion, in line with its guidance of $1.82 million to $1.85 million.

For the October-December 2015 quarter, Wipro said it expects revenues from IT services business to be in the range of $1,841 million to $1,878 million.

Commenting on the performance, Wipro chief executive officer T K Kurien said: "During the quarter, we grew IT Services Revenues in dollar terms by 3.1 per cent in constant currency and maintained margins in a narrow range."

The IT services segment added 6,607 people to take the total headcount to 1,68,396 employees as of September 30, 2015. The firm added 67 new customers during the quarter.

"Our investments in next-gen delivery practices generated productivity to significantly mitigate the impact of wage hikes and utilisation on operating margins," Jatin Dalal, chief financial officer, Wipro said.

The impact of cross-currency on operating margins was compensated by the benefits from rupee depreciation, he added.

Wipro's IT products segment delivered revenue of Rs 540 crore ($83 million) in the reported quarter.