India’s third largest IT exporter Wipro on Wednesday reported 8% growth in its net income to Rs 2,085 crore in the second quarter of the fiscal 2014-15 ended September 30 as against Rs 1,932 in the same period last year.
Total revenue of the Bangalore-based company for the July-September period stood at Rs 11,683 registering a growth of 8% when compared to the same period last year. The Profit before Interest and Taxes (PBIT) stood at Rs 2,306 crore registering a growth of 3% as against the same period last year.
The IT services revenue of the company was Rs 10,923 crore, an increase of 8 per cent on a YoY basis. Meanwhile the IT product business witnessed a negative growth of 2% at Rs 915 crore. On dollar terms, the IT services revenue was $1,771.5 million, a sequential increase of 1.8% and YoY increase of 8.6%.
ADVERTISEMENT
Earlier, the company had projected the revenue from IT services to be in the range of $1.77-1.81 million for July-September period. The IT services margin was 22.0%, the IT Services margin includes profit on sale of a strategic investment during the quarter.
Commenting on the company’s performance T K Kurien, Executive Director and Chief Executive Officer of Wipro said, “While the industry landscape is still undergoing change, we see multiple opportunity spaces of growth and gaining market share. We continue to execute to our stated strategy of leveraging platforms for non-linear growth and creating differentiated solutions around the new technology paradigms.”
During the second quarter the company added 50 new customers and made addition of 6,845 people taking the total headcount of the IT services segment to 154,297. In the July-September period, billionaire Azim Premji promoted company won around 8 large deals.
ADVERTISEMENT
“Overall, the 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. We are also seeing temporary cut backs in discretionary expenses from certain industry segments, as they adjust to structural changes,” Mr Kurien added.
On a vertical basis, the company witnessed a yoy growth of 20.1% in healthcare, life sciences and services, while energy and utility and global media and telecom grew 15.4% and 8.5% year-on-year.
On the geography front, Americas contributes 51 per cent of the company’s total business which grew 11.3 per cent in the second quarter while Europe grew 4.6%, India and Middle-East grew 20.0% on a yoy basis.
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.”
Going forward for the October-December, the company expects the IT services revenue to be in the range between $1,808 million to $1,842 million.