IT services major Wipro on Tuesday said it continues to see good opportunities in digital, cloud, cyber-security and engineering space after it posted a 2.17 percent dip in consolidated net profit to Rs 2,455.9 crore for the December 2019 quarter.
Wipro's net profit, attributable to shareholders, in the year-ago period, was Rs 2,510.4 crore. Its revenue from operations grew 2.7 per cent to Rs 15,470.5 crore during the period under review from Rs 15,059.5 crore in the same quarter last year (as per Ind-AS). Earnings per share (EPS) for the quarter was Rs 4.3 per share and grew 3.2 per cent year-on-year.
CNBC-TV18 spoke with Abidali Neemuchwala, chief executive officer; Jatin Dalal, senior vice president and chief financial officer; Bhanumurthy BM, president and COO and Saurabh Govil, president and CHRO, of the company to decode the Q3 earnings.
Dalal said, "We had a large buyback which we completed in September and since we paid out that Rs 10,600 crore, that much cash was lower for this quarter and therefore that much lower interest that we earned. So, if you really see our operating profit between Q2 and Q3, it is stable or has an improvement trend. However, our net income fell as the other income reduced from Q2 to Q3 as we earned that much less interest in the smaller kitty."
Bhanumurthy said, "We have always looked at acquisitions in terms of how relevant they are for our customer needs and whether they give us access to new customer bases and new customer offerings. International TechneGroup Incorporated (ITI) acquisition is exactly like that. So, we do see a good amount of market especially for engineering combined with the cognitive capabilities that we have."
Govil said, "There is no target for localisation. Four years back, we started localisation journey with an eye on business requirement and over the last four years, we have worked on it and gradually increased it. So, we are doing the right things rather than looking at a target. We continue to hire locally, we are going to campuses, we are hiring lateral people, we are hiring people who are students who have just come out, so very clearly a focused way of making sure we do the right things."
Neemuchwala said, "In last two or three years, we have seen market-leading growth in BFSI vertical. So I continue to feel very good about the BFSI vertical. We did have glitch last year because of what was happening in European banking, capital markets, some specific parts of our portfolio which had slowed down the growth for our financial year but next year again I am hopeful because the deal pipeline is pretty good."