Wipro Q2 net profit drops by 7.6% at Rs 2,070 crore

Country's third largest software services firm Wipro, on Friday, reported 7.6% decline, year-on-year, in consolidated net profit at Rs 2,070.4 crore for the September quarter of the current financial year. Stating that it foresees a "mixed" demand environment, Wipro said it expects its IT service revenue for the October- December quarter of 2016-17 to be in the range of $1,916 million (around Rs 12,836 crore) to $1,955 million (around Rs 13,095 crore).

With IT services revenue at $1,916 million in the September quarter, Wipro missed its guidance of $1,931 million (around Rs 12,936 crore) to $1,950 million (around Rs 13,063 crore) given at the beginning of the quarter. "As we look forward, the demand environment is mixed in a seasonally weak quarter affected by furloughs and lower number of working days," Wipro Chief Financial Officer Jatin Dalal said in a statement. The city-headquartered firm had posted a net profit (after tax, minority interest and share of profit of associates) of Rs 2,241 crore in the year-ago period.

Total income from operations rose by 10.5% to Rs 13,897 crore in July-September quarter of this fiscal from Rs 12,567 crore in the same period a year ago, it added. The IT services segment had a headcount of 174,238 as of September 30, 2016. Wipro's IT products segment delivered revenue of Rs 770 crore ($115 million) in the reported quarter.