Wipro Q4 Profit Down Over 5% At Rs 2,326 Crore, No Guidance

IT major Wipro on Wednesday reported a net profit of Rs 2,326.1 crore for the quarter ended March 31, kicking off the corporate earnings season. That marked a decline of 5.29 per cent compared to the corresponding period a year ago, for which the Bengaluru-based company had posted a net profit of Rs 2,455.9 crore. 

In a regulatory filing after market hours, Wipro said its gross revenue came in at Rs 15,711 crore in the quarter, marking an increase of 1.55 per cent compared to the three-month period ended December 31. 

“In these unprecedented times, I am extremely proud of how the Wipro team has come together and worked 24/7 to ensure the safety and well-being of each other while continuing to serve our clients. We hope that all of us stay safe and strong during these tough times," said Abidali Z Neemuchwala, CEO and managing director, Wipro. 

"We are confident that our broad portfolio of services and our ability to execute to our commitments makes us well-positioned to gain market share.”

Revenue from the company's IT services segment stood at $2,073.7 million, down 1.0 per cent compared to the previous quarter, the company said. The IT services operating margin was at 17.6 per cent, down 80 basis points compared to the previous quarter.

The company said the IT services revenue were "negatively impacted by COVID-19 by approximately $14 -$16 million (0.7-0.8 per cent of revenue)".

However, the company said its IT services segment continued its momentum in winning deals globally, including a multi-year engagement in Mexico with one of the world's largest Spanish language media companies to redefine their workplace experience. 

Wipro did not provide revenue guidance for the current quarter, which ends on June 30, citing "the uncertainty around the course of the COVID-19 pandemic".

"We anticipate that we will resume providing revenue guidance when we have increased certainty of both demand and supply side factors," it added.

Wipro's board did not recommend any final dividend for the financial year. The company said the interim dividend of Rs 1 per share decided in January will be considered as the final dividend for the year. That meant the total dividend for the fiscal year 2019-20 remained Rs 1 per equity share. 

Shares in Wipro ended 1.53 per cent lower at Rs 186.55 apiece on the BSE, underperforming the benchmark S&P BSE Sensex index which declined 1.01 per cent, ahead of the earnings announcement by the company.