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Wipro misses estimates, Q4 net profit falls 1.6pc

India's third largest IT services company has missed analyst expectation after its rivals, TCS and Infosys reported estimate-beating earnings.

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Soma Tah
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BANGALORE, INDIA: India's third largest IT services company has missed analyst expectation after its rivals, TCS and Infosys reported estimate-beating earnings.

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Wipro has posted a consolidated net profit for Q4 at Rs 2,240 crore, a YoY decline of 2.2 percent. Net profit was flat Sequentially. In Q3 Wipro posted a profit of Rs 2,230 crore. Analyst on average were expecting the company to report 2343 crore profit in Q4.

There was a sequential rise in Q4 revenue at 13,630 crore from 12,860 crore in Q3, which is in line with their guidance.

Wipro’s IT services revenue stood at $1,882 million(1,280 crore) in Q4,  a sequential increase of 2.4% and YoY increase of 6.1%. The company keeps the IT Services business guidance to be in the range  between $1,875 million and $1,912 million(1,280-1,305 crore).

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Wipro CEO Abidali Z. Neemuchwala said, “Our focus is to drive significant growth in our ‘run’ business through integrated services and hyper-automation while gaining leadership in the ‘change’ business through investments in Digital and Consulting capabilities, IP-based platforms & products and creating differentiated domain solutions for non-linear growth.”

The company added 119 new customers in Q4 including clients of Cellent and HealthPlan Services.

Vertical wise, Healthcare, Life Sciences & Services grew the most with 13.4% sequential rise, followed by Manufacturing & Hi-Tech(4.8%) and Retail, Consumer Goods & Transportation(1.4%), while the major verticals such as Finance Solutions took a beating with 0.9% fall, Energy, Natural Resources & Utilities with 0.6% fall and Global Media & Telecom with 0.2% fall.

Geography wise Americas contributed the majority of the company's revenue(52.5%), followed by Europe(25.6%), India & Middle East(11.0%), APAC & other emerging markets(10.9%).

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