Millennium Post

Wipro logs 20% rise in Q2 net profit

The city-headquartered firm had posted a net profit of Rs 1,610.6 crore in the year-ago period, it said in a BSE filing.

Consolidated revenues in the July-September quarterof  this fiscal rose by 19 per cent to Rs 11,331.9 crore from Rs 9,528 crore in the same quarter of 2012-13 fiscal.

Commenting on the performance, Wipro chairman Azim Premji said: 'There are positive indicators on the global economy. Client confidence is on the uptick and we see it reflected in our results.'

In US dollars, Wipro's net profit stood at $309 million in the second quarter this fiscal, while consolidated revenues were at $1.76 billion during the quarter.

'We achieved a broad based revenue growth across all industry verticals and continue to focus on executing to our strategy,' Wipro CEO T K Kurien said.

Its IT services revenue rose 5.9 per cent year-on-year to $1.63 billion, whereas sequential revenue growth stood at 2.7 per cent. In rupee terms, IT Services revenues stood at Rs 10,068 crore in the quarter under review. Wipro, which does not give annual forecasts, had guided to $1.62-1.65 billion IT service revenue in second quarter.

'Our sustained execution towards increasing operational efficiencies in the business coupled with currency benefits helped offset the impact of wage hikes resulting in strong improvements in operating margins,' Wipro Ltd CFO Suresh Senapaty said.

On outlook for October-December quarter, Wipro said: 'We expect revenues from our IT Services business to be in the range of $1.66-1.69 billion.'

Wipro added 45 clients during the second quarter this fiscal taking its total clients to about 1,256. Majority of additions came in from the $10 million bracket during the quarter.

Geography-wise, Americas was the top revenue generator followed by Europe, Asia-Pacific and other emerging markets and India and Middle East business.

In terms of verticals, Finance Solutions led the tally followed by Manufacturing & Hitech, Energy, Natural Resources & Utilities, Retail, Consumer Goods & Transportation, Global Media & Telecom and Healthcare, Life Sciences & Services.

On employee front, Wipro said its IT services segment had 147,216 employees as of September 30, 2013 against 147,281 in the April-June quarter this fiscal.

The firm said: 'IT Products segment delivered revenue of $150 million for the quarter, a Y-o-Y increase of 4 per cent.'
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