Wipro Q2 net profit up 24% at Rs 1,611 crore

Wipro Q2 net profit up 24% at Rs 1,611 crore

 Wipro Ltd reported year-on-year growth of 24 per cent in net profit at Rs 1,611 crore for the second quarter of fiscal 2013 ended September 30, 2012 and 17 per cent rise in consolidated revenues at Rs 10,657 crore, though company Chairman Azim H Premji called it “decent, but not great” during his interaction with the media on Friday.

The company’s flagship IT services revenues, which contributed 79 per cent of Wipro's total revenues for the quarter, grew 23 per cent at Rs 8,373 crore and consumer care & lighting revenues increased 26 per cent to Rs 1,008 crore on a year-on-year basis, but revenues from IT products declined 10 per cent to Rs 899 crore, compared to Rs 1,001 crore during the quarter ended September 30, 2011.

Company Chairman Azim Premji said that IT demand in the overall US economy has been holding out despite the slowdown. "It is not the bumper demand which was there three years back and two years back, but its reasonably strong," Premji said.

The company's IT products and Consumer Care and Lighting (CCL) businesses contributed 9 per cent each to the overall revenues.

The second quarter IT services revenues came in at $1,541 million, representing sequential growth of 1.7 per cent and y-o-y growth of 4.6 per cent, and was in line with the $1,520 million to $1,550 million figure it had forecast while declaring June quarter results.

The company attributed the decline in IT products revenues to a combination of the global economic slowdown, delay in decision making and inflation, though it hoped to do well in the next two quarters. However, it said its IT services revenues have met its guidance for the quarter under review.

The company estimated its third quarter IT services revenues to be in the range of $1,560-$1,590 million, which works out to a sequential growth in the range of 1.3-3.2 per cent.

"We have chartered a new course for Wipro by demerging our diversified Non-IT businesses. I am confident that the demerger will enhance value for all our stakeholders and provide fresh momentum for growth for each of our businesses," Premji added.
Wipro has announced demerger of its non-IT businesses like Consumer Care & Lighting into a new company.

The Bangalore-based company added 53 new customers during the quarter, as against 37 during the first quarter ended June 30, 2012. This included one customer in the $100 million plus revenues category, company Executive Director and CEO -- IT Business T K Kurien said.

Attrition during the second quarter stood at 14.6 per cent, the lowest in seven quarters. The headcount for the IT services segment, after factoring in 2,017 employees recruited in the current quarter, stood at 1,40,569 employees as on September 30, 2012.

The Wipro share opened at Rs 369.80 on Friday on the BSE, reaching an intra-day high of Rs 372.95 and closed at Rs 364.95, an increase of 0.98 per cent over the previous day’s close.

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