For quarter ending 31st December 2014, Wipro reported a consolidated profit of 2193 crore rupees, an increase of 9 percent Year-on-Year. Wipro posted a net profit of Rs 2015 crore in the same quarter of last fiscal year and Rs 2085 crore in the Q2 FY2014.
Total revenue of the quarter were 11990 crore rupees, an increase of 6 percent Year-on-Year.
Revenue from Wipro’s IT services rose 1.3 percent to US$ 1795.4 million during the third quarter ending December 2014 compared to US$ 1678.4 million of Q3 FY2014.
There is a decline in operating profit margin for IT services from 23% of Q3 FY2014 to 21.8% for Q3 FY2015. Even in comparison to Q2 and Q1 of FY2014-2015, operating margin for IT services has declined.
Wipro announces interim dividend of Rs. 5 per equity shares of par value Rs 2 each to the shareholders.
Azim Premji, Chairman of Wipro, said, “Developments in the Global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms.”
T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, “We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies as well as save costs in the traditional business.”
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “During the quarter, we saw all round growth led by growth in our Healthcare & Life Sciences business and Global Infrastructure Services. The share of fixed price contracts increased to over 55% of engagements – a reflection of the maturity of Wipro’s customer engagement model.”
Wipro has added 44 new customers during the third quarter ending December 2014 which included companies like Levi Strauss & Co, Cairn India, IDFC etc. With this addition total number of active customer for WIPRO is 1018.
Wipro reported a downtick in attrition rate to 16.5% as against 16.9% at the end of July-September period of FY2014. Gross utilization for Wipro has declined to 68.5 % during the three month period ending December 2014 from 70% at the end of July-September period and from 68.7% at the end of first quarter ending June 2014.
During the third quarter total head count in Wipro has raised to 156866 with net addition of 2569 employees during the quarter.
In its outlook for the quarter ending March 2015, Wipro expects revenue from IT services business to be in the range of US$ 1,814 million (11410 crore rupees) to US$ 1,850 million (11636.5 crores rupees).
Both IT major, Infosys and TCS also recorded rapid growth in net profit and total revenue.