Wipro Q1 net down 6% at Rs 2,001 cr

Wipro Ltd, India's third-largest IT services company, on Tuesday reported a net profit of Rs2,001 crore for the fiscal first quarter ended 30 June 2016-17, a year-on-year decline of six per cent.

On the other hand, revenue for the quarter increased 11 per cent to Rs13,600 crore , Wipro stated in a filing with the Bombay Stock Exchange (BSE).

Under the International Financial Reporting Standard (IFRS), Wipro said its net income for Q1 was $304 million against total revenue of $2 billion.

Revenue from its flagship global IT services grew 7.6 per cent over last year and 2.6 per cent sequentially to $1.9 billion under IFRS and Rs13,100 crore in rupee terms.

The IT services segment revenue grew 7.6 per cent contributing to $1,930.8 million of the total revenues. This was, in fact, close to the company's higher range of guidance estimated between $1,901 million to $1,939 million in constant currency terms for Q1.

"We have delivered revenues in line with our guidance," said Wipro CEO Abidali Z Neemuchwala.

While IT services segment revenues of the company rose 2.6 per cent to $1,930.8 million in constant currency terms on a sequential basis, on a year-over-year comparison profit was lower by 3 per cent to Rs2,330 crore ($345 million).

IT services margin was 17.8 per cent for the quarter, compared to 19.7 per cent for Q4 2015-16.

"IT Services margins reflect the investments in rewarding our employees as well as the impact of consolidation of our acquisitions for the full quarter," said CFO Jatin Dalal.

The IT services segment had a headcount of 173,863 as of 30 June 2016.

The company said it added 50 new customers in Q1.

The company's cash and cash equivalents as of 30 June 2016 stood at Rs12,443 crore, up from Rs9,904 crore at the end of the previous quarter.

The Wipro stock closed at Rs549.40, down 0.47 per cent from its previous close.