Wipro reported a little higher than expected results for the third quarter. The software services exporter’s consolidated net profit for October to December rose 10% year-on-year to Rs 1,456 crore. The net in the corresponding quarter of the previous year stood at Rs 1,319 crore. But it too warned that the uncertainties in the global economic environment remained a concern.
The Bangalore-based company’s revenue in the third quarter was up 28% or Rs 9,997 crore up 28% from the same period last year.
The company’s revenue from IT services, which accounts for 72% of its total topline, rose 28% year-on-year to Rs 7,608 crore. In US dollar terms, IT services revenue rose 12% from a year ago and 2.2% sequentially to USD 1.51 billion.
Wipro now expects IT services revenue in USD 1.52-1.55 billion range in the fourth quarter, up 1-3% quarter-on-quarter. The guidance is based on dollar-rupee exchange rate of 51.75.
Rival Infosys last week had guided for a flat growth in the fourth quarter.
Wipro added 39 customers in the third quarter. It added 5,004 employees in the quarter in the IT services segment and had 136,734 employees as of Dec 31.
Among its other segments, Wipro’s consumer care and lighting business saw revenue rise 26% year-on-year in Oct-Dec to Rs 879 crore, while EBIT (earnings before interest, taxes) was up 22% at Rs 104 crore.
Revenue from Wipro’s IT products division was up just 2% from a year ago at Rs 900 crore, while EBIT was up 16% at Rs 47.5 crore.
Wipro has announced an interim dividend of Rs 2 per share. Two days back we have recommended to buy this stock because of this bullish trend. Because of this better results we may see this stock price may go up Rs.450 shortly.