Wipro Results Better Than Expectations; Oil Prices A Worry

16/01/2015 5:39 PM IST | Updated 15/07/2016 8:24 AM IST
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Employees walk past Wipro Ltd. signage as they enter the company's campus in Bangalore, India, on Tuesday, Jan. 28, 2014. Worldwide spending on information technology will grow 3.1 percent to $3.8 trillion this year, with IT services set to climb 4.5 percent, researcher Gartner Inc. forecast Jan. 6. Photographer: Vivek Prakash/Bloomberg via Getty Images

India's third-largest software services firm, Wipro, today reported third quarter results that beat expectations, on higher spending by clients in healthcare and infrastructure services. The company also said that the global plunge in oil prices might lead to lower spending by clients in coming quarters.

The Bangalore-based company said consolidated net profit was Rs 2,198 crore, a rise of 9 percent over the same period last year. Analysts had estimated net profit of Rs 2,149 crore.

Consolidated revenue was at Rs 12,085 crore, up 7 per cent compared with the same quarter last fiscal year.

"Next year the only uncertain element of oil prices," said CEO T.K. Kurien in a press conference. "We expect plunge in crude prices to affect discretionary spending. We have seen early signs of large projects being cancelled in the Middle East and the United States."

The company also said it had appointed Jatin Dalal as chief financial officer after Suresh Senapaty said he was retiring.

The company declared an interim dividend of Rs 5 per share of par value Rs 2 each. The stock closed marginally lower at Rs 555.25.

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