Wipro’s third quarter net profit rises 18% to Rs 1,716 crore
19 Jan 2013 6:20 AM IST
Country's third largest software services firm Wipro on Friday reported 18 per cent rise in its consolidated net profit to Rs 1,716.4 crore for the third quarter ended December 31, 2012. The Bangalore-based company had posted a net profit of Rs 1,456.4 crore in the year-ago period, it said in a filing to the BSE.
Consolidated total income of the IT major was up by 10 per cent to Rs 10,989.1 crore for the October-December quarter in the current fiscal against Rs 9,965.1 crore in the same period of 2011-12 fiscal. The IT services revenue, which accounted for 78 per cent of its revenues, stood at USD 1.577 billion in the reported quarter, up 4.8 per cent year-on-year and 2.4 per cent compared to July-September 2012 quarter. In rupee terms, it stood at Rs 8,602 crore.
"In constant currency, IT services revenue in dollar terms was USD 1.571 billion, within our guidance range of USD 1.560 billion to USD 1.590 billion," Wipro said in a statement.
"While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity," Wipro Chairman Azim Premji said. Wipro expects its revenues from IT services business to be in the range of USD 1.585 billion to USD 1.625 billion for the quarter ended March 31, 2013.
"We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than USD 100 million and lower attrition.
"We continue to make investments in our go to market organisation and technology themes to be a strategic partner to our customers," Wipro IT Business Executive Director and CEO T K Kurien said.
The IT services segment had 1,42,905 employees as of December 31, 2012, an increase of 2,336 people in the quarter.
It added 50 new customers in the reported quarter. ‘We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management,’
Wipro's Executive Director and CFO Suresh Senapaty said. Its IT products segment recorded revenue of Rs 997 crore for the quarter, a year-on-year increase of 11 per cent, while consumer care and lighting business segment recorded revenue of Rs 1,028 crore, a growth of 17 per cent year-on-year. Both businesses contribute about nine per cent of its total revenue.
READY TO SELL SMALL STAKE TO MEET SEBI NORMS, ASSURES PREMJI
Wipro Ltd will sell a small stake if it is not able to bring down the promoter holding in the company to 75 per cent even after the completion of demerger process and certain other steps being taken to meet regulatory norms, its Chairman Azim Premji said on Friday.
On Wipro’s strategy to bring down the promoter stake as per market regulator Sebi’s mandate, Premji also said it will depend on the eventual interpretation of the guidelines. Under Sebi norms, privately promoted companies are expect to have a public shareholding at 25 per cent by June 2013, while the same for the state-run listed companies has been relaxed to 10 per cent, which has to be met by August 2013.
According to the mandate, Premji has to reduce the promoter stake in the company to 75 per cent by June this year. As on 31 December 2012 promoter and promoter group shareholding in Wipro stood at 78.29 per cent.
Consolidated total income of the IT major was up by 10 per cent to Rs 10,989.1 crore for the October-December quarter in the current fiscal against Rs 9,965.1 crore in the same period of 2011-12 fiscal. The IT services revenue, which accounted for 78 per cent of its revenues, stood at USD 1.577 billion in the reported quarter, up 4.8 per cent year-on-year and 2.4 per cent compared to July-September 2012 quarter. In rupee terms, it stood at Rs 8,602 crore.
"In constant currency, IT services revenue in dollar terms was USD 1.571 billion, within our guidance range of USD 1.560 billion to USD 1.590 billion," Wipro said in a statement.
"While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity," Wipro Chairman Azim Premji said. Wipro expects its revenues from IT services business to be in the range of USD 1.585 billion to USD 1.625 billion for the quarter ended March 31, 2013.
"We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than USD 100 million and lower attrition.
"We continue to make investments in our go to market organisation and technology themes to be a strategic partner to our customers," Wipro IT Business Executive Director and CEO T K Kurien said.
The IT services segment had 1,42,905 employees as of December 31, 2012, an increase of 2,336 people in the quarter.
It added 50 new customers in the reported quarter. ‘We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management,’
Wipro's Executive Director and CFO Suresh Senapaty said. Its IT products segment recorded revenue of Rs 997 crore for the quarter, a year-on-year increase of 11 per cent, while consumer care and lighting business segment recorded revenue of Rs 1,028 crore, a growth of 17 per cent year-on-year. Both businesses contribute about nine per cent of its total revenue.
READY TO SELL SMALL STAKE TO MEET SEBI NORMS, ASSURES PREMJI
Wipro Ltd will sell a small stake if it is not able to bring down the promoter holding in the company to 75 per cent even after the completion of demerger process and certain other steps being taken to meet regulatory norms, its Chairman Azim Premji said on Friday.
On Wipro’s strategy to bring down the promoter stake as per market regulator Sebi’s mandate, Premji also said it will depend on the eventual interpretation of the guidelines. Under Sebi norms, privately promoted companies are expect to have a public shareholding at 25 per cent by June 2013, while the same for the state-run listed companies has been relaxed to 10 per cent, which has to be met by August 2013.
According to the mandate, Premji has to reduce the promoter stake in the company to 75 per cent by June this year. As on 31 December 2012 promoter and promoter group shareholding in Wipro stood at 78.29 per cent.
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