Wipro reports muted Q2, net profit almost flat at Rs 2,667 crore
Wipro, an erstwhile software bellwether now undergoing a protracted turnaround, on Wednesday reported a marginal on-year increase in the September-quarter net profit that declined nearly 8% sequentially, mirroring an industry-wide sluggishness in deal conversions and cautious discretionary spending in primary revenue-generating markets either side of the Atlantic water margin.
India's fourth-largest software company also gave a tepid outlook, citing an «uncertain» business environment. Another sharp headcount reduction and circumspect business projections were worse than the grim forecast provided earlier by larger peers, such as Tata Consultancy Services (TCS) and Infosys, for a near $250-billion outsourcing industry that accounts for one-eighth weighting on the Nifty.
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Net profit for the July-September quarter came in at Rs 2,667 crore, on below-estimates revenue of Rs 22,515 crore, down 0.1% on-year and 1.4% on-quarter — a third consecutive quarterly decline. Wipro shed more than 5,000 people in the just-ended quarter, a reduction in its employee base for the fourth consecutive three-month period.
The Bengaluru-based software company on Wednesday said it expects revenue from the IT Services business segment in the October-December period to shrink 1.5% to as low as 3.5% sequentially in constant currency terms to $2.617 billion-$2.672 billion, compared with $2,713.3 million in
