<p>The revenue of the company in Q2 grew 18 per cent (YoY) to Rs 9,094 crore. Flat growth in profits was mainly due to a wage hike in the second quarter, the company explained. <br /><br />However, Wipro’s IT services, which contributed 75 per cent to revenues in the second quarter, grew 19 per cent (YoY) to Rs 6,829 crore, but the sequential growth was only 7 per cent. The Profit before interest & tax (PBIT) from IT services in Q2 grew by 7 per cent (YoY) to Rs 1,364 crore. <br /><br />Announcing the results, Wipro Chairman Azim Premji said, “Macroeconomic sentiments continue to remain uncertain. We have seen growth momentum build up in our IT business with healthy volume growth,” adding that Wipro’s focused investment strategy will get the business to a higher growth trajectory.<br /><br />Wipro has forecast its revenues from the IT services business to be in the range of $1,500 million to $1,530 million in the third quarter, ending December 31, 2011.<br /><br />“Overall, our portfolio is in the right direction. We have plenty of work to do, going forward. My own sense is that what you see in phase one of the whole effort that we started off some time ago, we have got phase two and phase three to follow. So there are plenty of opportunities and we have to execute them,” Wipro CEO (IT Business) T K Kurien said.<br /><br />The IT services division hired 5,240 new people in the second quarter, taking the company’s total headcount to 1,31,730 employees as on September 30, 2011. <br /><br />Expressing confidence that attrition rates will come down, Wipro Executive Vice-President (Human Resource) Pratik Kumar said, “Attrition has been a good story, so it is just in terms of rate at which we have been able to bring it down. It has been significant and has been to the extent of 4.7 per cent from the last quarter.” Kumar attributed the decline in attrition to salary hikes and promotions during the quarter.<br /><br />The company added 44 new customers during the reporting quarter. “We continue to see incremental progress in our client mining strategy, with five customers contributing more than $100 million of revenues and our top customer hitting a revenue run rate upward of $200 million,” Wipro Chief Financial Officer Suresh Senapaty said, adding that operating margins were impacted during the quarter by salary increases.<br /><br />He added that the company has not witnessed any pressure on the prices it charges for its services and IT spends by clients continue to be good despite the uncertainty in the US and European economies. "We are not seeing any amount of pricing pressure because the customers are looking at total cost to them. We are pretty decently placed there and are not seeing any kind of pressure on coupon price," Senapaty said.<br /><br />On a standalone basis, Wipro reported a net profit of Rs 1,050.60 crore in Q2, a decline of 10.36 per cent from Rs 1,172.1 crore in the same period last year. Sales of IT products at Rs 1,001 crore accounted for 11 per cent of company’s revenue in Q2, a decline of 6 per cent year-on-year.<br /><br />Wipro’s consumer care and lighting business recorded revenues of Rs 800 crore in Q2, FY’12, an increase of 20 per cent y-o-y, accounting for 9 per cent of Wipro’s total revenues during the quarter. <br /></p>
<p>The revenue of the company in Q2 grew 18 per cent (YoY) to Rs 9,094 crore. Flat growth in profits was mainly due to a wage hike in the second quarter, the company explained. <br /><br />However, Wipro’s IT services, which contributed 75 per cent to revenues in the second quarter, grew 19 per cent (YoY) to Rs 6,829 crore, but the sequential growth was only 7 per cent. The Profit before interest & tax (PBIT) from IT services in Q2 grew by 7 per cent (YoY) to Rs 1,364 crore. <br /><br />Announcing the results, Wipro Chairman Azim Premji said, “Macroeconomic sentiments continue to remain uncertain. We have seen growth momentum build up in our IT business with healthy volume growth,” adding that Wipro’s focused investment strategy will get the business to a higher growth trajectory.<br /><br />Wipro has forecast its revenues from the IT services business to be in the range of $1,500 million to $1,530 million in the third quarter, ending December 31, 2011.<br /><br />“Overall, our portfolio is in the right direction. We have plenty of work to do, going forward. My own sense is that what you see in phase one of the whole effort that we started off some time ago, we have got phase two and phase three to follow. So there are plenty of opportunities and we have to execute them,” Wipro CEO (IT Business) T K Kurien said.<br /><br />The IT services division hired 5,240 new people in the second quarter, taking the company’s total headcount to 1,31,730 employees as on September 30, 2011. <br /><br />Expressing confidence that attrition rates will come down, Wipro Executive Vice-President (Human Resource) Pratik Kumar said, “Attrition has been a good story, so it is just in terms of rate at which we have been able to bring it down. It has been significant and has been to the extent of 4.7 per cent from the last quarter.” Kumar attributed the decline in attrition to salary hikes and promotions during the quarter.<br /><br />The company added 44 new customers during the reporting quarter. “We continue to see incremental progress in our client mining strategy, with five customers contributing more than $100 million of revenues and our top customer hitting a revenue run rate upward of $200 million,” Wipro Chief Financial Officer Suresh Senapaty said, adding that operating margins were impacted during the quarter by salary increases.<br /><br />He added that the company has not witnessed any pressure on the prices it charges for its services and IT spends by clients continue to be good despite the uncertainty in the US and European economies. "We are not seeing any amount of pricing pressure because the customers are looking at total cost to them. We are pretty decently placed there and are not seeing any kind of pressure on coupon price," Senapaty said.<br /><br />On a standalone basis, Wipro reported a net profit of Rs 1,050.60 crore in Q2, a decline of 10.36 per cent from Rs 1,172.1 crore in the same period last year. Sales of IT products at Rs 1,001 crore accounted for 11 per cent of company’s revenue in Q2, a decline of 6 per cent year-on-year.<br /><br />Wipro’s consumer care and lighting business recorded revenues of Rs 800 crore in Q2, FY’12, an increase of 20 per cent y-o-y, accounting for 9 per cent of Wipro’s total revenues during the quarter. <br /></p>
