Millennium Post

Wipro quarterly net up 8% to Rs 2,084.8 crore

The city-headquartered firm posted a net profit (after tax, minority interest and share of profit of associates) of Rs 1,932.1 crore in the year-ago period, it said in a statement.

Net sales of the country's third largest software services exporter rose by 7.5 per cent to Rs 11,816 crore in July-September quarter this fiscal from Rs 10,990.7 crore in the same quarter of 2013-14 fiscal, it added.

Revenue from IT services stood at $1.77 billion, a quarter-on-quarter growth of 1.8 per cent and year-on-year of 8.6 per cent.

In July, the firm had said it expected IT services revenues in the July-September quarter to be in the range of $1.77-1.81 billion. Commenting on the performance, Wipro Chairman Azim Premji said: ‘Business leaders in the US continue to exhibit increased confidence on growth prospects. Clients are increasingly looking to drive business value from their technology investments.’

He further said: ‘We are seeing positive sentiment in India with the confidence that the government is focused on driving an agenda of growth.’

The company said in the October-December quarter it expects revenues from IT services business to be in the range of $1.808-1.842 billion. Wipro CEO T K Kurien said: ‘While the industry landscape is still undergoing change, we see multiple opportunity spaces for growth and gaining market share.’

‘The firm continues to execute our stated strategy of leveraging platforms for non-linear growth and creating differentiated solutions around the new technology paradigms.’

The IT Services segment had a headcount of 154,297 as of 30 September, 2014. The firm added 50 new customers during the second quarter. Wipro CFO Suresh Senapaty said: ‘In Q2, we continued to build on our leadership position in Infrastructure services and continued the momentum of deal wins.’

During the quarter, the benefits of rupee depreciation were negated by the US Dollar's appreciation against other major currencies, he added.

‘We continued to drive productivity and improving operating levers even as the effect of salary hike on this quarter's operating margin was on expected lines,’ Senapaty said.

Speaking to reporters, Kurien said the second half of the 2014-15 fiscal will be better than the first half. ‘Overall the entire demand environment continues to hold steady. In North America, we see discretionary spending return. In Continental Europe, we see opportunities for growth given lower levels of outsourcing penetration,’ he added. Kurien said that Wipro is also seeing a temporary cutback in discretionary expenses from certain industry segments, as they adjust to structural changes.
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