Wipro Ltd on Wednesday unveiled that Due to lower earnings from clients in non-US countries, the company reported a 9.6% decline in net profit for the second quarter.
Bengaluru: Wipro Ltd on Wednesday unveiled a report in which it mentioned a weaker-than-expected second quarter profit, hit by higher employee-related expenses.
Due to lower earnings from clients in non-US countries, the company reported a 9.6% decline in net profit for the second quarter.
Wipro reported a net profit of Rs 2,649.1 crore for the quarter in July-September, in comparison to Rs 2,930.6 crore during the same time last year, as per the firm’s statement,
The Bengaluru-based company also projected its IT services business revenue to remain in the range of $2.81 billion to $2.85 billion, for the quarter ending December 31, representing a sequential growth of 0.5% to 2.0%.
The quarterly expenses of Wipro have touched 19.2%, or Rs 19,395 crore, while staff attrition in the IT Services Division decreased to 23% from 23.3% at the end of September.
Currently, the crucial point is that clients are in a catch-22 situation in taking any decision on larger outsourcing transactions due to the unpredictability of the global economy.
The combined net profit for the quarter that ended on September 30 was Rs 2,659 crore ($323.3 million), down from Rs 2,931 crore in the same period last year. Experts had predicted a profit of about Rs 2,844 crore on average.
Revenue from operations jumped almost 15%, to Rs 22,540 crore.