Wipro Q1 Net Profit Dips 6.7 Per Cent To Rs 2,059 Crore
Wipro says it has decided not to proceed with the buyout of US-based Viteos Group due to 'inordinate delays in completion of closing conditions that exceeded the target closing date'
Photo Credit :
The country's third-largest software services firm Wipro on Tuesday posted 6.7 per cent decline in its net profit at Rs 2,059 crore for the quarter ended June 2016.
The company had reported a net profit of Rs 2,207.4 crore in the year-ago period, Wipro said in a statement.
Its total income from operations rose 10.7 per cent to Rs 13,697.6 crore for the said quarter, from Rs 12,370.6 crore in the April-June 2015 quarter.
The firm's IT services revenues, which account for a substantial chunk of the pie for the city-based firm, saw a sequential growth of 2.6 per cent to $1,931 million in the said quarter, meeting its revenue guidance of $1,901 million to $1,939 million.
For the July-September 2016 quarter, Wipro expects its IT services revenues to be in the range of $1,931 million to $1,950 million.
The IT services segment had a headcount of 1.73 lakh as of June 30, 2016. Revenues from IT products stood at Rs 590 crore.
"We have delivered revenues in line with our guidance. We expect the trajectory of growth to build gradually over the course of the year as we drive execution on our strategic themes and make progress towards achieving a sustainable growth trajectory," Wipro CEO Abidali Z Neemuchwala said.
Chief Financial Officer Jatin Dalal said the IT services margin, at 17.8 per cent in the said quarter as against 19.7 per cent in January-March 2016, reflected the investments in rewarding employees as well as impact of consolidation of acquisitions for the full quarter.
"We continue to expand the reach of our automation programmes to harness efficiency gains," he added.
Wipro said it has decided not to proceed with the buyout of Viteos Group due to "inordinate delays in completion of closing conditions that exceeded the target closing date".
In December last year, Wipro had announced the signing of a definitive agreement to acquire US-based Viteos Group for $130 million.