Wipro reports poor third-quarter, outlook for 1-2% growth

Wipro Ltd has reported poor third quarter results.

The highlights are as follows.

Gross Revenues were 136.9 billion ($2 billion), an increase of 6.4% YoY.

Net Income was 21.1 billion, a decrease of 5.7% year on year.

Both numbers are below market expectations.

The outlook is for a growth of 1-2% in revenue, which is below what the market was expecting and is considered a disappointment.

““Our bold investments in Digital, BPaaS and cloud applications position Wipro as the partner of choice for the Digital businesses of our clients. Digital eco-system grew by 9.9% sequentially in the quarter and now constitutes 21.7% of our revenues”, said Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board.

“In the last year, we have invested almost $1 billion in acquisitions, made 6 investments through Wipro Ventures, funded 8 ideas through our Horizon program, and continued to invest aggressively in our cognitive platform, Wipro HOLMES and in our stated localization strategy.”

“We expanded operating margins by 50 basis points in a seasonally weak quarter and generated strong operating cash flows by disciplined execution,” said Jatin Dalal, Chief Financial Officer. “We are significantly leveraging HOLMES, our automation suite to drive efficiencies in our operations.”