Country’s third largest software services firm Wipro on Wednesday reported a 5.8 per cent drop in its consolidated net profit to Rs 2,114.8 crore for the quarter ended December 31, 2016.
The company had reported a net profit of Rs 2,246 crore in the corresponding period a year ago.
The city-based firm, however, saw revenues rising 6.2 per cent to Rs 13,764.5 crore in the said quarter from Rs 12,951.6 crore in the same period last year, according to a filing on the BSE. The result is as per Indian Accounting Standards.
Wipro’s IT services segment revenue stood at $1,902.8 million, a sequential decrease of 0.7 per cent and 3.5 per cent rise year-on-year as per IFRS.
This is, however, lower than the company’s guidance of $1,916-1,955 million.
For the March 2017 quarter, Wipro expects revenues from IT services business to be in the range of $1,922 million to $1,941 million.
“We expanded operating margins by 50 basis points in a seasonally weak quarter and generated strong operating cash flows by disciplined execution,” Wipro Chief Financial Officer Jatin Dalal said.
“We are significantly leveraging HOlMES, our automation suite to drive efficiencies in our operations,” he added.
last year, Wipro invested almost $1 billion into acquisitions, made six investments through Wipro Ventures, funded 8 ideas through Horizon programme, and continued to invest aggressively in cognitive platform, Wipro CEO and Board member Abidali Z Neemuchwala said.
Digital ecosystem grew by 9.9 per cent sequentially in the quarter and now constitutes 21.7 per cent of Wipro’s revenues, he added.