Wipro CEO: We’ll overcome setbacks in coming months
Neemuchwala said two bankruptcies had adversely affected the company's Q4 profits but felt the software services giant would return to growth soon
Wipro CEO Abid Ali Neemuchwala says setbacks suffered in the last quarter, due mainly to bankruptcies of its clients Aircel and UK-based Carillion, will be overcome in forthcoming quarters.
India’s third-biggest software services exporter by revenue reported a 20% fall in fourth-quarter net profit, missing analyst estimates. Net profit fell to just over 18 billion rupees (US$270 million) in the three months to March 31, from 22.6 billion rupees a year earlier, Times of India reported.
The Wipro CEO said the two bankruptcies had hit the company’s bottom line, but he expressed confidence in the company’s order book and felt they would be back to growth by the second quarter, the daily added.
Apart from the two bankruptcies the revenue fall at HealthPlan Services (HPS), the US healthcare business that it acquired for $460 million in 2016, also affected the company’s bottom line.
HPS caters to people who enrol for Obamacare and the customers are insurance firms or individuals. With the Trump administration not making its stand clear in regard to a subsidy, this has led to uncertainty among insurance companies.
However, Neemuchwala pointed out that the company was doing well in areas such as banking, financial services and insurance, manufacturing and technology, plus energy.