Wipro's Q2 disappoints as company lowers dollar revenue guidance for Q3

Bengaluru based software services provider Wipro has posted weak set of quarterly results on all fronts post market hours on Friday, October 2016. Wipro has reported a mere 0.9 per cent growth in consolidated profit at Rs 2,070.4 crore compared with Rs 2,051.9 crore in preceding period.

Total revenue during the quarter has increased by 1.5 per cent to Rs 13,896.8 crore as against Rs 13,697.6 crore achieved in the corresponding quarter of the last fiscal. Dollar revenue from IT services segment, a key figure which is closely monitored has declined by 0.8 per cent sequentially to USD 1,916.3 million in September quarter but has grown by 0.9 per cent in terms of constant currency.

In future guidance, Wipro expects its revenues from IT services business to be in the range of USD 1,916-1,955 million for third quarter, a growth of 0-2 per cent over second quarter.

EBIT margin has remained unchanged at 17.8 per cent on a sequential basis, which was ahead of estimates of 17.04 per cent, due to operational efficiency.

Business units - Healthcare, Life Sciences & Services has grown 4.3 per cent and Energy, Natural Resources & Utilities 1.3 per cent on a constant currency basis sequentially.

Ahead of earnings, shares of Wipro closed one per cent higher at Rs 499 at NSE.