HomeWipro's Q4 net profit falls 20%

Wipro's Q4 net profit falls 20%

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By CNBC-TV18 April 26, 2018, 9:16:35 AM IST (Updated)

Wipro's Q4 net profit falls 20%
Software giant Wipro said net profit for the fourth quarter fell by about 20 percent to Rs 1,800.80 crore.  IT services revenue of Rs 13,412 crore, missing CNBC-TV 18 estimates by 0.2 percent.


The company reported gross revenue of Rs 13,768 crore for the quarter ended March 31.

.@Wipro announces Q4 numbers; IT Services EBIT margin at 14.4% vs estimate of 17.4%. #4QWithCNBCTV18 https://t.co/b3JtpaU2H9



Fourth quarter Earnings Before Interest and Tax (EBIT) of 1,932 crore also fell short of estimates by about 17%. Q4 Margins of 14.4% also missed estimates by about 300 basis points.

IT services rupee revenue was at Rs 13,412 crore, compared to CNBC-TV18 estimates of Rs 13,520 crore.

Wipro said it expected revenue from its IT Services unit to be in the range of $2.01- $2.06 billion.

The company had announced the divestiture of its hosted data center services business to Ensono for a consideration of $405 million.

Wipro also said it expect the transaction to complete during the quarter ending June 30, 2018.

Speaking after the announcement of the results, Abidali Neemuchwala, Chief Executive Officer of Wipro, said, “Disappointed with loss of momentum in Q1 due to bankruptcies faced by two clients. But confident that we will return to growth trajectory in Q2."

"Surpassed $8 billion mark in IT services in FY18," he said in Bengaluru and added, "Revenues grew by 2.4% in dollar terms and 1.1% sequentially."

Neemuchwala said that the company's digital revenues grew 9% quarter-on-quarter and closed highest order-booking in digital deals in Q4.

He added that revenue per employee has increased 6% over last 4 quarters and the company continues to focus on localisation of employees.

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