Big setback for Wipro, company misses estimates, logs 14% decline in Q2FY19 PAT

IT major Wipro today posted its September 2018 quarter result, under which the company recorded negative earnings despite witnessing good revenue. Wipro registered net profit  of Rs 1,889 crore which was down by 13.81% from Rs 2,191.8 crore in the corresponding period of the previous year. Q2FY19 net profit was also down by 10.92% as against Rs 2,120.8 crore in the preceding quarter. 

With this, Wipro has failed to meet analysts estimates, as a Bloomberg poll of experts had predicted Wipro's net profit to come in at Rs 2,130 crore in Q2FY19. 

On the other hand, Wipro's revenue stood at Rs 14,541 crore rising 5.43% from Rs 13,423.4 crore a year ago same period. Also, revenue increased by 8.32% compared to Rs 13,977.7 crore in preceding quarter. 

Wipro surpassed estimates in top-line growth, as the Bloomberg poll had expected revenue to stand at Rs 14,484 crore this Q2FY19. 

For six months period of FY19, Wipro's revenue was at Rs 28,518.1 crore which was higher by 5.43% on yearly basis, whereas net profit was at Rs 4,009.8 crore declining by 6.06% from Rs 4,268.5 crore in 1HFY18. 

On BSE, the Wipro share price finished at Rs 309.25 per piece mostly muted compared to previous day price of Rs 309.30 per piece. The impact of the negative PAT in Q2FY19, will be seen in next trading session on Wipro.