Wipro’s net up 10%, IT revenues 28%
Wipro Ltd, on Friday, announced increase of 10 per cent in its net income for quarter ending December, 2011 (YoY), at Rs 1,456 crore compared to Rs 1,319 crore in the same quarter previous year.
In the quarter ending December 2011 (Q3), its consolidated revenue stood at Rs 9,997 crore, 28 per cent higher (YoY) than Rs 7,829 crore in Q3 of 2010.
Wipro’s revenues from IT Services were Rs 7,608 crore, a YoY increase of 28 per cent from Rs 5,909 crore.
The PBIT (Profit Before Interest and Tax) from IT Services stood at Rs 1,583 crore, showing a YoY growth of 20 per cent. Wipro’s shares closed at Rs 414 on BSE, up 2.4 per cent. “We continue to execute on our strategy and propel the business towards a higher growth trajectory. The overall macroeconomic sentiments continue to be uncertain and we are monitoring it closely,” Chairman Azim Premji said.
“We saw broad based growth with five of the six verticals growing upwards of 4 per cent in constant currency. Revenues in constant currency exceeded guidance range. We have seen positive feedback from customers and employees on our restructuring approach,” Executive Director & Chief Executive Officer, Wipro IT Business, T K Kurien said.
In its outlook for quarter ending March 2012, Wipro said it expects IT Services business to be in the range of $1,520 million to $1,550 million, a sequential growth of 1 per cent to 3 per cent. The company said it will increasingly focus on areas of cloud, analytics and mobility to gain momentum in this uncertain economic environment and added that it has logged 30 per cent YoY growth in these sectors.
“Our client mining strategy continues to show progress with six customers contributing more than $100 million of revenues. We have improved operating margins through improved revenue productivity and currency benefits,” Executive Director & Chief Financial Officer Suresh Senapaty said. Wipro, during the quarter, added 39 new clients and its IT segment, as of December 31, 2011 had 136,734 employees, an increase of 5,004 people.
Analyst at Angel Broking Ankita Somani feels that Wipro’s overall performance has been good and their guidance of 1 per cent to 3 per cent is fair enough.
“Wipro has constantly been improving since the last two quarters and might catch up with its peers, if it continues to grow at the current pace,” said Somani. Like other Indian IT companies operating abroad, Wipro also gained from 11 per cent depreciation in rupee in the December quarter as 52.5 per cent of its revenue was generated in the American states and 28.2 per cent from Europe.
Wipro said its IT Products business earned a revenue of Rs 900 crore with 2 per cent YoY growth and its Consumer Care and Lighting earned a revenue of Rs 879 crore, a YoY growth of 26 per cent.
