Wipro net profit up 18% to Rs 1,716 cr
†Wipro Limited on Friday reported net profit of Rs 1,716 crore for the quarter ended December 31, 2012 (Q3), an increase of 18 per cent when compared to the same period last year.
The company's revenues increased 10 per cent year-on-year and stood at Rs 11,025 crore. Wipro's IT services business posted earnings before interest and tax (EBIT) of Rs 1,792 crore, an increase of 13 per cent compared to the same period of the previous year; IT services reported revenue of Rs 8,602 crore for the quarter under review.
“The overall macro-economic factors are stabilising globally. The US economy has shown improvement, which is evident from improved consumer demand and improvement in employment data,” Wipro Chairman Azim Premji said.
Premji added that in India, the company welcomes the policy changes announced by the government on the deferment of GAAR and clarifications on Income Tax which are pro-industry and investor.
Though Wipro met its Q3 revenue guidance of $1,560-$1,590 million, it came out with a muted guidance of $1,585-$1,625 million for the quarter ending March 31, 2013.
Wipro Executive Director & Chief Executive Officer (IT Business) T K Kurien, said – “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 with10 customers contributing more than $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.”
The IT services segment had 142,905 employees as of December 31, 2012, an increase of 2,336 people in the quarter. The company also added 50 new customers in the quarter under review and the deal pipeline is strong.
Kurien added that the client-hunting team it had earlier established to aggressively go after deals to 160 people.
“We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management,” Executive Director & Chief Financial Officer Suresh Senapaty said.
However, the company's growth has not been equally significant across geographies. Though Europe, for instance, has grown 10.3 per cent year-on-year (YoY), America saw decline of 0.50 per cent YoY.
The company's revenues in consulting business took a hit this quarter, declining 18 per cent from the same quarter last year; ADM business declined 5.9 per cent YoY. However, its technology infrastructure services increased 14.6 per cent YoY.
Wipro Consumer Care and Lighting business segment recorded revenues of Rs 1,028 crore ($187 million) for the quarter, an increase of 17 per cent YoY. Following the announcement, Wipro shares on BSE tanked closed to 8 per cent and closed at Rs 397.15 per share.