Wipro on Tuesday reported a 6 per cent growth in revenues at Rs. 6,917 crore against Rs. 6,507 crore in the corresponding quarter in the previous year. The profit after tax went up by 19 per cent to Rs. 1,162 crore from Rs. 978.20 crore. Only IT services revenue showed a marginal decline of four per cent (annualised) in dollar terms.

Commenting on the results, Wipro Chairman Azim Premji said, “The macro environment is stabilising in developed countries. As I talk to CEOs across the globe, the sentiment is more upbeat than before. At Wipro we find our clients continue to focus on spend and capital conservation. Overall we should return to our original growth soon.”

Protectionist views

Referring to protectionist views in the U.S., he remarked ``the National Association of Software and Service Companies (Nasscom) has been lobbying with U.S. Senators and Congressmen but high unemployment remains in many developed countries.” NewLogica, part of the French company acquired by Wipro in December last had been sold off and the future of remaining employees had been amicably settled with the French authorities, he said. Wipro’s growth in China continued and soon it might be able to address the local market, he added.

Chief Financial Officer Suresh Senapathy said pricing had helped and was expected to remain stable in the third quarter but volume growth had mostly contributed to overall revenue growth. “Not all customers have limited spending; we have both new clients and new large deals from some existing customers. The Banking, Financial Services and Insurance sector is expected to step up orders in the new quarter,” he added.

The guidance for the quarter ending December was for a sequential growth close to five per cent and revenue from IT services in the range of $1,092-$1,113 million based on current exchange rates, Mr. Senapathy indicated. Referring to the results he said in rupee terms, IT services revenue had grown five per cent year-on-year to reach Rs. 4,996 crore. The profit before interest and tax in this segment was Rs. 1,187 crore, a 19 per cent increase. “Operational improvements have helped and margins for the IT services business stood at 23.8 per cent, a expansion of 143 basis points sequentially and 279 basis points year-on-year.” Among other segments, IT products grew by 18 per cent and consumer care and lighting by 11 per cent. Among service lines, BPO grew by seven per cent and consulting by 16 per cent sequentially. Europe and Middle East continued to grow at seven per cent.


Standard & Poor’s assigns ‘BBB’ to WiproOctober 26, 2009

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