Wipro, country’s third largest software exporter, on Wednesday reported 5.84% decline in its consolidated net profit at Rs 2,114.8 crore during the third quarter ending December 31,2016, compared with Rs 2,246 crore in the same period last year.
The company’s net profit on a sequential basis registered a muted growth of 1.81% compared with Rs 2,077 crore during the second quarter ending September 30, 2016.
Commenting on the result, Wipro Chief Executive Officer Abidali Z Neemuchwala said the company’s bold investments in digital, BPaaS and cloud application position it as the partner of choice for the digital business for the clients.
“Digital eco-system grew by 9.9% sequentially in the quarter and now constitutes 21.7% of our revenues,” he added.
Interestingly, Wipro’s total revenues registered a growth of 6.27% at Rs 13,764.5 crore for the third quarter of FY 2017, compared with Rs 12,951.6 crore in the same period last fiscal. Sequentially it declined 0.95% compared with Rs 13,896.8 crore for the second quarter ending September 2016.
Wipro’s IT services segment revenue stood at Rs 13,196.1 crore for the third quarter, registering a growth of 7.15% compared with Rs 12,314.7 crore in the same period last fiscal. On a sequential basis, it registered a growth of 4.45% compared with Rs 13,136.6 crore in the previous quarter.
Topline growth
Continuing with its single digit topline growth, the company announced its guidance for Q4 from IT services business to be in the range of $1,922 million to $1,941 million.
The company added 4,891 employees during the quarter, taking the total headcount to 1,79,129. Wipro also registered a gross attrition rate of 16% and gross utilisation of 71.6%. Wipro’s Board has approved an interim dividend of Rs 2 per equity share.
Wipro to acquire Brazilian IT firm
Wipro has signed a deal to buy Brazilian software services firm InfoSERVER for $ 8.7 million to get access to the Latin American market. Two-decade old InfoSERVER, which has the largest Brazilian banks, will help Wipro to expand in its BFSI segment in the Latin American market.