Wipro third quarter net profit rises 30%, beating estimates

IT services bellwether Wipro said on Friday net profit jumped 30 percent year-on year to Rs 2,510.4 crore in the third quarter.

On a sequential basis, net profit rose 34.9 percent to Rs 2,544 crore in the October-December quarter. In the same quarter last year the software services provider had posted Rs 1,930.10 in net profits.

On a further positive note, the Bengaluru-headquartered software giant forecast higher sequential revenue in the next quarter.

• Net profit rises 34.9 percent to Rs 2,544 crore
• Revenue from IT services grows 13% 
• Board approves issue of bonus shares in a ratio of 1:3

The results beat analysts estimates, Reuters said, citing data compiled from Refinitiv Eikon. According to Wipro revenue from its IT services to will be between $2.05 billion to $2.09 billion for the March quarter.

Revenue from IT services grew 13 percent to 146.66 billion rupees ($2.06 billion) in the third quarter, while total revenue rose 10.2 percent.

Shares rise 3%

The board also approved an issue of bonus shares in a ratio of 1:3.

Shares in the Bengaluru-based company closed 3.2 percent higher while the broader Mumbai market ended up 0.02 percent.

Bigger rival Tata Consultancy Services Ltd reported a 24 percent rise in quarterly net profit while Infosys Ltd reported a 29.6 percent profit slump on account of a one-off gain last year.

(With inputs from Reuters)