BENGALURU/NEW DELHI : Information technology major Wipro’s net profit for the fourth quarter of financial year 2017-18 plunged over 20 per cent year on year to Rs 1,800.80 crore, as provisions made to cover dues from an insolvent client and an impairment loss in one of its acquisitions compressed margins.
According to the financial results disclosed by the firm on Wednesday, it had registered a profit of Rs 2,267 crore in the year-ago period, as per Indian accounting norms.
Total income of the company also declined during the quarter under review, falling 4.9 per cent year-on-year to Rs 14,304.6 crore compared to `15,045.5 crore in the January-March period of 2016-17.
In a seperate disclosure, Wipro acknowledged provisions accumulating to Rs 208 crore (or $32 million) for the insolvent customer (which it did not name) and an impairment loss in one of its acquisitions.
Of this, close to three-fourths — 143.7 crore — were provisions made for the insolvent customer.
Wipro, in an April 9 exchange filing, had noted that it expected 65-75 basis points fall in its bottom line due to one of its telecom sector client’s ongoing insolvency proceedings. It had made a `317 crore provision in the December quarter for for a second insolvent customer.
For the first quarter of this year ending June 30, the company said it expected revenue from IT services business to be in the range of $2,015 million.
“We had announced the divestiture of our hosted data center services business to Ensono for a consideration of $405 million. We expect the transaction to complete during the quarter ending June 30, 2018. For the purpose of the outlook, we have not considered the impact of the divestment on the revenue for the next quarter,” the company said.