Wipro recognized of loss of Rs.514 crore from the settlement with its client in Q2FY19. This led to its net profit falling 10% (QoQ) at Rs.1886 crore despite a 2% rise in revenue at Rs.14,568 crore. The jump in revenue was mainly on account of the company’s record $1.5 billion deal with Alight LLC in September.
Wipro’s dollar revenue from software services was almost static at $2,041 million, a rise of 0.7% (QoQ). EBITDA fell 13% to Rs.2097 crore while margins fell 260bps to 14.4% from 17%.
Thanks to the rupee depreciation, it earned a forex gain of Rs.122 crore - dollar revenue adds almost 60% to its topline.
Regarding its future estimate, Wipro expects a QoQ growth in Q3FY19 at 1 to 3% with IT services revenue at $2028 million.
The stock price is currently just about holding on to the green at Rs.311 and this is after rising to Rs.317.75 from yesterday’s close of Rs.309.15.