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Wipro Q2 net up 19% at Rs. 978 crore

BANGALORE: Wipro on Wednesday reported a 36 per cent rise in revenues at Rs. 6,507 crore in the quarter ended September 30 against Rs. 4,776 crore in the same period in the previous year. The profit after tax increased by 19 per cent to Rs. 978 crore from Rs. 824 crore. The operating margin remained at 21 per cent.

Wipro Chairman Azim Premji told reporters here, “Our IT service revenues outperformed guidance to reach $1,110 million, a 5-per cent growth, and could earn more this quarter. Our outlook remains cautious in the near term.” The lifeline of economy, credit, was impaired and the economic crisis had spread globally, he added.

“What this means to IT business are we have to go for a transformation approach to help customers realise better cost and service optimisation. With discretionary spending cut by customers, our growth has to come from transformational deals,” Mr. Premji remarked. The IT services business added 28 new clients during the quarter.

Chief Financial Officer Suresh C. Senapaty said, “Rate realisation and fixed price projects mix improved by 200 and 100 basis points each and utilisation moved up by 200 basis points. These gains on the operational front improved margins in IT services.” The IT products also recorded a 50 per cent annualised growth and consumer care and lighting business revenues grew by 42 per cent.

The multi-year multi-million new accounts acquired in the quarter included a financial services group in Europe, a consumer apparel company in the U.S. and a water utility in the U.K., Mr. Senapaty said. Wipro’s French market had expanded with an engagement with a major telecom company there.

Wipro directors responded questions by explaining that 3,000 persons were being hired this year, one-third from campuses. The freshers may go through staggered periods of training related to their induction, they said.

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