Wipro posts lower than expected revenue in Q3; profit declines by 3%

Wipro posts lower than expected revenue in Q3; profit declines by 3%
Photo Credit: Reuters
14 Jan, 2020

Information technology firm Wipro has reported a lower than expected quarterly revenue.

The Bengaluru-based company said its total revenue rose to Rs 15,470.5 crore in the third quarter ended December 2019, from Rs 15,059.5 crore, a year earlier, in its exchange filings.

Brokerage house Motilal Oswal had expected Wipro to report a net profit at Rs 15,693.3 crore, up by 4.2% year-on-year compared to the currently reported 2.7% increase.

“We expect revenue from our IT Services business to be in the range of $2,095 million to $2,137 million,” the company said in terms of its outlook next quarter.

Net profit declined by 3.3% to Rs 2,462.9 crore.

The October-December quarter is usually heralded a slow quarter for IT services firms because of the furloughs of Thanksgiving, Christmas and new year holidays in the western countries -- geographies that Indian software services exporters focus on.

TechCircle reported the following developments at the salt-to-technology conglomerate during Q3 2019.

In October, telecom networking equipment major Nokia had partnered with Wipro to develop 5G use cases for telecom operators and other enterprise customers.

In December, Wipro had launched advanced cloud security operations centre (SOC) services using Azure Sentinel, Microsoft's cloud cybersecurity platform. This had come a week after Infosys’ announcement of similar capabilities.

In the same month, Wipro had launched a cyber defence centre (CDC) in Melbourne, Australia.

In the busy December, Wipro had also signed a multi-year deal to transform the cloud and IT infrastructure of Japanese medical technology company Olympus. The financial terms of the deal were not disclosed.

In January, government-owned aerospace and defence company Hindustan Aeronautics and Wipro 3D, the metal additive manufacturing business arm of Wipro Infrastructure Engineering, signed a memorandum of understanding to design, develop, manufacture and repair aerospace components using metal additive technology.