Wipro's Q2 net profit rises 6%

IT-giant Wipro surpassed estimates by reporting nearly 6% rise in its consolidated net profit for the second quarter ended September 30, 2017 (Q2FY18). 

Wipro posted consolidated net profit of Rs 2,191.8 crore in Q2, rising by 5.86% compared to Rs 2,070.4 crore in the corresponding period of the previous year. Q2Y18 also increased by 5.24% from Rs 2,082.4 crore of the preceding quarter. 

A Bloomberg poll of analysts estimated Wipro's bottom-line to be at Rs 2,070 crore this quarter. 

Consolidated revenue from operation stood at Rs 13,423.4 crore, reflecting decline of 2.48% year-on-year (YoY) and 1.48% quarter-on-quarter (QoQ). 

This Q2, profits from IT services stood at Rs 2,280 crore an increase of 4% sequentially. While its margins for the quarter was 17.3%, as compared to 16.8% for the quarter ended June 30,2017.

IT Services segment revenues in dollar terms were $2,013.5 million, an increase of 2.1% sequentially (Non-GAAP constant currency increase of 0.3% sequentially) and 5.1% YoY (Non-GAAP constant currency increase of 2.8% YoY).

Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board said, "We surpassed the milestone of $2 billion in quarterly revenues for IT Services on the back of rigorous execution of our strategy.”

Wipro expects revenue from IT services business to be in the range of $2,014 million to $2,054 million for December 31, 2017 (Q3FY18) quarter. 

In regards to buyback, Wipro said, "The Buyback offer period will commence upon completion of regulatory requirements."

On July 20,  the Board approved a proposal for Buyback of up to 343.75 million equity shares at a price of Rs 320 per equity share - aggregating up to Rs 11,000 crore.