Wipro, India's third largest software services exporter, beat Street estimates with an 18 per cent increase in net profit in the December quarter, rounding off a strong season for India's $100 billion outsourcing industry.
Wipro's net profit rose to Rs 1,716 crore on consolidated sales of Rs 10,981 crore in the October to December period. Brokers polled by NDTV Profit had estimated a net profit of Rs 1,641 crore on consolidated sales of Rs 10,952 crore.
The company had reported a net profit of Rs 1,610 crore on sales of Rs 10,657 crore in the September quarter. On a year-on-year basis, its net profit jumped 18 per cent from Rs 1,456 crore a year earlier.
IT services, which contributes over 90 per cent of Wipro's operating profit, rose to $1,577 million, a jump of 2.4 per cent over the previous quarter. Wipro had forecast 1.2-3.2 per cent growth in the December quarter.
For the March quarter, Wipro has come out with muted guidance indicating 0.5 to 3 per cent sequential growth at $1585-$1625 million (at 1$=Rs 54.65).
Wipro's Q3 earnings are likely to please investors as the Bangalore-based company has struggled amid global slowdown much like Infosys. However, muted guidance may cap gains.
Wipro shares closed 2.6 per cent higher at Rs 431.10 on the Bombay Stock Exchange against a 1.4 per cent rise in the broader BSE IT index. The stock gained after global brokerage UBS raised its ratings to 'buy' from 'sell', saying revenue momentum will start picking up from the October-December quarter.
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