Wipro’s Q4 Net Profits Impacted By Covid 19, Sees Challenging Times

Wipro today reported a drop in its net profit to Rs 2,345.20 crore for March quarter compared with Rs 2,493.90 crore in the corresponding quarter last year.

The company said that the results were impacted negatively by the coronavirus and will not provide any revenue guidance for the June quarter.

"We estimate that the IT Services Revenues for the quarter ended March 31, 2020 were negatively impacted by COVID-19 by approximately $14 -$16 million5(0.7%-0.8% of revenues). Due to the uncertainty around the course of the COVID-19 pandemic, we do not have visibility into the extent to which it will disrupt our operations, and we have decided to not provide revenue guidance for the quarter ending June 30, 2020. We anticipate that we will resume providing revenue guidance when we have increased certainty of both demand and supply side factors.

Jatin Dalal, Chief Financial Officer said, "The quarters ahead seem challenging and require a tremendous response on costs. We also anticipate our working capital to increase, but our strong balance sheet provides us the confidence that we will emerge stronger and better. Further, due to the volatility in the external environment, we have decided not to provide a quarterly guidance on revenues."

Abidali Z. Neemuchwala, CEO and Managing Director said, "In these unprecedented times, I am extremely proud of how the Wipro team has come together and worked 24/7 to ensure the safety and well-being of each other while continuing to serve our clients. We hope that all of us stay safe and strong during these tough times. We are confident that our broad portfolio of services and our ability to execute to our commitments makes us well-positioned to gain market share."