Wipro revenue up 4.6%, projects flat growth in Q3

wipro-revenue-mix-in-fiscal-2017
Software major Wipro posted revenue of $2,068 million ($2.1 billion), including $1,916 million ($1.9 billion) from services in the second quarter (July-September) of fiscal 2016-17.

Revenue of Wipro rose 4.6 percent year-on-year but flat (0.8 percent) sequentially.

In rupee terms, IT services revenue grew 9 percent to Rs 13,140 crore. Consolidated net profit of Wipro was Rs 2,074 crore — registering 7.7 percent decline.

In dollar terms, net income of Wipro was $313 million.

In a regulatory filing to the stock exchanges, the IT firm said consolidated revenue for the quarter under review (Q2), however, increased 10 percent to Rs 13,766 crore from Rs 12,514 crore in like period year ago.

Revenue Mix of Wipro

Practices

Analytics 7.3%

Application Services 43.8%

Business Process Services 13.4%

Global Infrastructure Services 28.2%

Product Engineering 7.3%

Strategic Business Units

Communications 7.5%

Consumer 15.7%

Energy, Natural Resources & Utilities 12.9%

Finance Solutions 25.5%

Healthcare, Life Sciences & Services 16%

Manufacturing & Technology 22.4%

Geography

Americas 54.8%

APAC and Other Emerging Markets 10.8%

Europe 24%

India & Middle East business 10.4%

Wipro said gross profit from IT services segment declined 5 percent to Rs 2,340 crore ($352 million) and operating margin remained flat at 17.8 percent.

The software major projected flat sequential revenue growth from its global IT services for the third quarter (October-December) of fiscal 2016-17, as demand environment remains challenging.

“We expect revenue from our IT services business to be in the range of $1,916-1,955 million ($1.92-1.96 billion) for the quarter (Q3) ending December 31,” said the IT firm in a regulatory filing with the stock exchanges.

The third quarterly guidance of $1.9 billion is same as $1,916 million ($1.9 billion) the services business posted for the second quarter (July-September), which was also sequentially flat from the first quarter (April-June) of this fiscal.