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    Wipro Q4 profit down 6% to Rs 2,345 crore; suspends revenue guidance amid uncertainty over COVID-19

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    Wipro Q4 profit down 6% to Rs 2,345 crore; suspends revenue guidance amid uncertainty over COVID-19

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    Information Technology giant Wipro on Wednesday reported its fourth-quarter results for the financial year 2020 with the IT services revenue coming in at Rs 15,296 crore against Rs 15,100 crore reported in the last quarter, a rise of 1.3 percent. A CNBC-TV18 poll had estimated the IT services revenue at Rs 15,316 crore for the March quarter.

    Information technology company Wipro Ltd on Wednesday posted a nearly 6 percent decline in consolidated net profit to Rs 2,345.2 crore for the quarter-ended March 2020. The Bengaluru-based company's net profit stood at Rs 2,493.9 crore in March 2019 quarter.
    As uncertainty in the external environment amid coronvirus pandemic loom large, the IT major also suspended revenue growth guidance.
    The company's revenue for the quarter stood at Rs 15,296 crore against Rs 15,100 crore reported in the last quarter, a rise of 1.3 percent.
    A CNBC-TV18 poll had estimated the IT services revenue at Rs 15,316 crore for the March quarter.
    The company estimates that the IT services revenues for Q4 were negatively impacted by approximately $14 million-$16 million -- 0.7 percent-0.8 percent of revenues.
    The IT services operating margin for the quarter was at 17.6 percent, a decrease of 0.8 percent QoQ vs the poll prediction of 18 percent.
    Wipro said it will resume providing revenue guidance after it sees "increased certainty" on demand and supply side factors.
    Wipro, in a regulatory filing, said, "We estimate that the IT services revenues for the quarter ended March 31, 2020 were negatively impacted by COVID-19 by approximately USD 14-16 million (0.7-0.8 per cent of revenues),"
    Due to the uncertainty around the course of the COVID-19 pandemic, it does not have visibility into the extent to which it will disrupt the company's operations, it added.
    However, the company had previously guided for up to two percent increase (USD 2,095 million to USD 2,137 million) in its IT services revenue.
    Wipro's mainstay IT services revenue was $2,073.7 million, a sequential decrease of 1 percent.
    Wipro CEO and MD Abidali Z Neemuchwala said: "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".
    Neemuchwala said that these are unprecedented times owing to the coronavirus crisis and the company has worked 24x7 to secure well being of its staff and clients.
    He said that the first two months of 2020 was strong for order book of the company. But in March, as COVID-19 crisis deteriorated, there was a cascading impact on business.
    "We activated COVID-19 global crisis management task force led by Bhanu Murthy, ," Neemuchwala said, adding that the company's top priority remains the well-being of its people.
    He said that Wipro's global offices have enabled work-from-home regime for its employees. The company has moved massive number of laptops, desktops, data cards to enable work from home, and proactively reached out to the customers. In all, 93 percent employees have been approved by customers to work from home.
    Wipro's FY20 net profit grew 8.3 percent to Rs 9,771.8 crore, while revenue rose 4.2 percent to Rs 61,023.2 crore from FY19.
    The government has extended the nationwide lockdown till May 3 to contain the spread of coronavirus infection. The Home Ministry on Wednesday issued detailed guidelines that allows IT and IT-enabled services to operate with up to 50 percent strength.
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