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2 percent increase in net profit of Wipro
Posted on: 18/Jan/2016 4:40:04 PM
With 39 newly added customers during the quarter, Wipro Ltd, the third largest software services exporter in India has seen a 2 percent increase in its quarter net profit, as per reports on Monday.
However, there is a 20.2 percent decline in operating margins for its IT services business. The same was 21.8 percent one year ago. This is due to heavy floods in Chennai where the company has 13 percent of its staff.
In the March quarter Wipro is likely to forecast services revenue of the range $1.88 billion to $1.91 billion which is a 4 percent rise compared to the preceding quarter. There was a 0.3 percent growth in the December quarter as compared to the July-September period.
Abidali Neemuchwala took position as the Chief Executive early this month. The company strives to get back its market share from all the other larger outsourcing competitors. Neemuchwala will begin his role from the 1st February.
Appointment at Bengaluru, Wipro is made at a time when there are options looked for enhancing business in high margin new digital technology services.
There is a pool of cheap skilled labors in the India’s software services sector that is mostly export driven. However, companies like Wipro are facing severe competition from their global competitors which forces them on the fees for routine IT services.
In the past few years, Wipro which also has its name listed in New York has been facing lag in growth in its IT sector.
The net profit of Wipro technologies in the third quarter that got ended on 31st December was 22.34 billion rupees equivalent to $330.2 million. The same was 21.93 billion rupees an year ago. A profit of 22.23 billion rupees was expected.
In the December quarter, there was a dip of 14.4 percent in its energy, natural resources and utilities.
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