BENGALURU (Reuters) -India’s Wipro Ltd missed analyst estimates for June-quarter profit on Wednesday, as higher employee-related costs pushed up the information technology services firm’s overall expenses.
IT companies including Wipro and larger rivals Tata Consultancy Services, Infosys and HCL Technologies have been facing cost challenges as they seek to retain employees amid a sector-wide talent churn, which has dented their margins.
Total quarterly expenses jumped 22.9% to 186.48 billion rupees, with voluntary IT services attrition at 23.3%.
Consolidated net profit for the quarter ended June 30 fell 20.9% to 25.64 billion rupees ($320.54 million), compared with 32.43 billion rupees year ago. Analysts on average had expected a profit of 29.5 billion rupees, according to Refinitiv data.
Revenue from operations rose nearly 18% to 215.29 billion rupees.
($1 = 79.9900 Indian rupees)
(Reporting by Nallur Sethuraman and Nandan Mandayam in Bengaluru;Editing by Vinay Dwivedi)
