Wipro Q2 net down 8% YoY; Q3 guidance disappoints

Bangalore-headquartered IT services firm Wipro continued to report subdued growth as it guided for a slower Q3 growth, while the company’s Q2FY17 topline revenue beat street estimates. The company reported net profit of Rs 2,070 crore for the second quarter ended September 30, 2016, a decline of 8% on a year-on-year basis. Revenue for the quarter grew 10% at Rs 13,770 crore on year-on-year basis.

The flagship IT services business reported revenue of Rs 13,137 crore an increase of 0.2% in sequential terms.In US dollar terms the company’s revenue at $1,916.3 million dipped 0.8%. The company has guided that its Q2 revenues would grow in the band of 0-1%. But what continues to disappoint about the company is its growth guidance, for the Q3 of FY17 it said the topline will grow in the band of 0-2%. Wipro has been growing in single digit band for the past four quarter when its peers have been managing to grow at a better pace. Wipro guided for revenues from its IT Services business to be in the range of $1,916 million to $1,955 million.