Wipro, India's third largest software exporter, today reported a rise of 4% in consolidated net profit to Rs 21.88 billion for the quarter ended Jun. 30, 2015 compared to Rs 21.03 billion in the same period last year.
Consolidated revenues for the current quarter stood at Rs 123.71 billion, up 10% from Rs 112.45 billion in June 2014 quarter.
IT services segment revenue went up 10% year-on-year basis to Rs 115.8 billion for June 2015 quarter. Meanwhile in dollar terms, IT services segment revenue was USD 1,794.1 million, up 1.1% from the previous quarter.
IT services segment margin declined 180 basis points over the previous year period to 21% for the June 2015 quarter. On sequential basis, margin was 100 basis points lower from 22% for the March 2015 quarter.
For second quarter of FY16, the company expects revenues from IT services business to be in the range of USD 1,821 million to USD 1,857 million.
Commenting on the financial performance, TK Kurien, member of the board and chief executive officer of Wipro, said, 'On the Run side, deals are getting increasingly competitive and we are focussed on increasing the levels of the automation, while on the Change side, new stakeholders are influencing buying decisions in the digital space.
On the Run side, we continued to win deals which deploy Wipro HOLMESTM, our Artificial Intelligence platform to drive down costs for our customers. On the Change side, we have announced the acquisition of Designit, one of the largest independent global strategic design firms. Designit's design capabilities in synergy with Wipro's scale in technology services will position Wipro uniquely in Digital, as an integrated design & technology player.'
Jatin Dalal, chief financial officer of Wipro, said, 'We continued to drive productivity and improve operating levers even as we invested for growth in people, process and IP. In the quarter, we maintained strong cash flow generation while operating margins were, on predictable lines, modestly lower due to employee compensation measures.'
Wipro has added 36 new customers during the quarter. The company's IT services segment had a headcount of 161,789 as Jun. 30, 2015.
Shares of the company gained Rs 3.05, or 0.52%, to settle at Rs 588.40. The total volume of shares traded was 204,435 at the BSE (Thursday).
