Wipro Q2 net profit up 19%

Wipro, on Tuesday, reported a net profit after tax (PAT) of Rs 1,162 crore for quarter ended September 30, a growth of 19 per cent over Rs 978 crore in the same quarter last year (YoY).  Wipro beat its own guidance and revenue increased to Rs 6,917 crore in the September quarter, registering an annual growth of 6 per cent.

IT services business  reported revenue of Rs 4,996 crore for the quarter registering a growth of 5 per cent YoY growth and a sequential growth of 3.5 per cent. The IT services business contributes 72 per cent of its  revenue and 91 per cent of its profit before tax.

Wipro added 37 new clients during the quarter including Nokia Siemens Networks and Delhi International Airport Ltd.

“We see more stability in volumes and pricing as well as an improving demand environment,” said Wipro Chairman Azim Premji. For quarter ended on September 30, IT products business recorded revenues of Rs 1,183 crore, representing a growth of 18 per cent YoY. IT products business accounted for 17 per cent of the revenue and 5 per cent of the PBIT.

“Our commitment to operational improvement continues to pay dividend, resulting in double digit growth in PAT. Margins for IT services business stood at 23.8 per cent,” said Wipro Chief Financial Officer Suresh Senapaty.

The BPO business continues to benefit as customers drive down cost and grew by 7 per cent sequentially, consulting business grew by 16 per cent while application development and maintenance grew by 5 per cent.

On non IT side of business, consumer care and lighting business recorded revenues of Rs 587 crore, registering a growth of 11 per cent YoY, accounting 8 per cent of the revenue.
Wipro’s involuntary attrition grew to 3.1 percent from 1.9 per cent in the  quarter and the headcount for IT services business decreased by 630 people to 97,891 from 98,521 sequentially.

As part of localising Wipro’s global delivery centres, the company added 475 people overseas in the current quarter of which more than 80 per cent were local nationals.

The company forecast its global IT services revenue to grow 2.5 per cent to 4.5 per cent sequentially in the third quarter ending December 2009, in the range of $1092 million to $ 1113 million.

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