Bengaluru: India’s Wipro Ltd on Wednesday reported a weaker-than-expected second quarter profit, hit by higher employee-related expenses.
The Bengaluru-based company also forecast its revenue from IT services business to be in the range of $2.81 billion to $2.85 billion for the quarter ending Dec. 31, translating to a sequential growth of 0.5% to 2.0%.
Wipro said its total quarterly expenses jumped 19.5% to 196.22 billion Indian rupees, while staff attrition in the IT services business fell to 23%, from 23.3% at the end of June.
Earlier this week, its largest rival Tata Consultancy Services Ltd posted a bigger-than-expected rise in quarterly profit, but flagged that clients were taking longer to decide on bigger outsourcing deals in an uncertain global economic environment.
Wipro’s consolidated net profit for quarter-ended Sept. 30 came in at 26.59 billion Indian rupees ($323.3 million), compared with 29.31 billion rupees year ago.
Analysts on average had expected a profit of 28.44 billion rupees, according to Refinitiv data.
Revenue from operations rose nearly 15% to 225.40 billion rupees. –Reuters
($1 = 82.2530 Indian rupees)
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