Wipro disclosed a marginal fall in consolidated net profit for the quarter ended March 2018. During the quarter, the profit of the company down 20.56% to Rs 18 billion from Rs 22.67 billion in the same quarter last year. On sequential basis, the company registered down 6.70% in the net profit.
Revenues for the quarter fall marginally 4.92% to Rs 143.04 billion, compared with Rs 150.45 billion for the prior year period.
IT Services Segment Revenue was USD 8,060.2 million, an increase of 4.6% YoY. Non-GAAP constant currency IT Services Segment Revenue grew 2.9% YoY.
IT Services Segment Revenue in Rupee terms remained flat at Rs 528.4 billion (USD 8.1 billion1).
IT Services Margin was 15.8%. Excluding the impact of insolvency of two customers and the impairment loss in one of our acquisitions, IT Services Margin for the year was 16.8%.
We expect Revenue from our IT Services business to be in the range of USD 2,015 million to USD 2,065 million. We had announced the divestiture of our hosted data center services business to Ensono for a consideration of USD 405 million. We expect the transaction to complete during the quarter ending June 30, 2018. For the purpose of the Outlook, we have not considered the impact of the divestment on the Revenue for the quarter ending June 30, 2018. We will revise the Outlook for the quarter based on the actual date of completion of the divestment.
Abidali Z. Neemuchwala, CEO and Member of the Board said, ''Our investments in Digital and our efforts in client mining are paying off well. Our strong order bookings in the last two quarters provide us the right foundation to grow as we progress through the year.''
Jatin Dalal, Chief Financial Officer said, ''We continue to make progress in our client mining, with number of clients contributing revenues over USD 75 million increasing from 17 to 20 during the quarter. Our investments in Wipro HOLMESTM and our automation suite are resulting in consistent productivity improvements. We generated robust Operating Cash Flows of ₹84 billion at 105% of our Net Income in FY18.''
Shares of the company declined Rs 9.65, or 3.25%, to settle at Rs 287.20. The total volume of shares traded was 297,385 at the BSE (Wednesday).
