BENGALURU: Wipro Ltd on Wednesday reported a weaker-than-expected second quarter profit hit by higher employee-related expenses.
The company reported a 9.6 per cent drop in its net profit in the second quarter, on lower earnings from clients in non-US markets.
Wipro reported a net profit of Rs 2,649.1 crore in July-September quarter, compared to Rs 2,930.6 crore in the same period a year back, the company said in a statement.
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 December 31, translating to a sequential growth of 0.5% to 2.0%.
Wipro said its total quarterly expenses jumped 19.2% to Rs 19,395 crore, while staff attrition in the IT services business fell to 23% from 23.3% at the end of September.
Earlier this week, Tata Consultancy Services posted a bigger-than-expected rise in quarterly profit, but flagged that clients are taking longer to decide on bigger outsourcing deals in an uncertain global economic environment.
Consolidated net profit for quarter-ended September 30 came in at Rs 2,659 crore ($323.3 million), compared with Rs 2,931 crore year ago. Analysts on average had expected a profit of Rs 2,844 crore, according to Refinitiv data.
Revenue from operations rose nearly 15% to Rs 22,540 crore.
