Wipro net declines 21% in Q4, 5.9% in 2017-18

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Bengaluru, April 25 (IANS) Global software major Wipro on Wednesday reported that its consolidated net profit declined 21 per cent annually for the fourth quarter and 5.9 per cent yearly for fiscal 2017-18.

“Consolidated net profit for the fourth quarter declined 21 per cent year-on-year to Rs 1,801 crore from Rs 2,267 crore in the same period year ago.

“Net profit for the fiscal also declined 5.9 per cent to Rs 8,008 crore from Rs 8,514 crore in 2016-17,” said the company in a regulatory filing on the BSE.

Sequentially too, net profit declined 7.2 per cent from Rs 1,940 crore posted in the third quarter.

Consolidated revenue for the quarter also declined, albeit marginally, 1.6 per cent to Rs 13,769 crore from Rs 13,988 crore in the same period last year and remained flat sequentially as against Rs 13,670 crore quarter ago.

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Consolidated revenue for the fiscal also remained flat at Rs 54,487 crore as against Rs 55,040 crore in 2016-17.

Under the International Financial Reporting Standards (IFRS), net income was $277 million and gross revenue $2,115 million for the quarter.

For the fiscal under IFRS, net income was $1.2 billion and gross revenue $8.4 billion, an annual decline of 1 per cent.

IT services for the quarter contributed $2,062 million, posting 2.4 per cent sequential and 5.5 per cent growth under IFRS and Rs 13,410 crore in rupee terms, up 1.3 per cent sequentially from quarter ago.

For the fiscal, IT services revenue remained flat at Rs 52,840 crore or $8.1 billion.

The city-based outsourcing firm projected lower sequential revenue for the first quarter of 2018-19 from IT services business in dollar terms.

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“We expect revenue from our IT services to be in the range of $2,015-2,065 million for the first quarter ending June 30,” said the filing.

The outlook is less than $2,033-2,073 million range it projected for the fourth quarter of fiscal 2017-18 on January 19 and $2,062 million it reported.

The company, however, said it would revise the outlook for the quarter after divesting its hosted data centre services business to the US-based Ensono for $405 million (Rs 2,633 crore) during the quarter.

“As we expect to complete the transaction by June 30, we have not considered the impact of the divestment on the revenue for the quarter,” said the company in the filing.

Wipro on March 14 announced selling its eight data centres along with their 900 techies to the US-based hybrid IT services provider.

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As part of the deal, Wipro will also invest $55 million (Rs 358 crore) in Ensono’s combined entity.

“The outlook is also based on the exchange rate of US$ at Rs 65.12 on March 31,” it added in the filing.

–IANS

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