Buoyed by market conditions and the business potential of its subsidiaries, infotech major Wipro has increased its investments in Wipro GE Medical Systems and WeP Peripherals. The company has pumped in over Rs 25 crore (Rs 250 million) in these companies, while its investments in mutual funds have also been hiked by over Rs 450 crore (Rs 4.5 billion) in the last one-year period.
The Azim Premji-controlled company had invested Rs 84.76 crore (Rs 847.6 million) in these subsidiaries as on September 30, 2005, an increase of Rs 25.21 crore (Rs 252.1 million) from the Rs 59.55 crore (Rs 595.5 million) put in the affiliates as on September 30, 2004. As on March 31, 2005, the investments stood at Rs 70.84 crore (Rs 708.4 million) in the two subsidiaries, sources in the company told Business Standard.
On a spilt basis, Wipro has invested Rs 63.12 crore (Rs 631.2 million) in Wipro GE Medical Systems, a joint venture company with GE, as of September 30, 2005. This is an addition of Rs 20.47 crore (Rs 204.7 million) during a 12-month period in the division as it had invested Rs 42.65 crore (Rs 426.5 million) as on September 30, 2004.
The investments in the unit, in which Wipro holds a 49 per cent stake and General Electric holds the remaining 51 per cent stake, stood at Rs 50.67 crore (Rs 506.7 million) as on March 31, 2005.
A company spokesperson said that "the increase in investments is due to recording of our share in profits for the period of October 2004 to September 2005." She also confirmed that GE had not infused additional equity into the company.
The group's investments in WeP Peripherals stood at Rs 21.64 crore (Rs 216.4 million) as on September 30 this year, up by Rs 4.75 crore (Rs 47.5 million) from Rs 16.89 crore (Rs 168.9 million) as on September 30, 2004. Wipro's investments in WeP Peripherals, an wholly-owned subsidiary of the company, stood at Rs 20.17 crore (Rs 201.7 million) as on March 31, 2005. Wipro holds a minority stake of 38.1 per cent.
A goodwill investment of Rs 2.7 crore (Rs 27 million) was also effected in the company, with the spokesperson attributing this to Wipro's acquisition of a 7 per cent minority interest in Wipro BPO.
Meanwhile, in an attempt to make use of the surplus cash lying in its coffers, Wipro has increased its investments in mutual funds.
The company has invested a total of Rs 2,816.61 crore (Rs 28.17 billion) in mutual funds and foreign funds (including trust funds) as on September 30, 2005.
This is an increase in investments by Rs 466.12 crore (Rs 4.66 billion) from Rs 2,350.49 crore (Rs 23.5 billion) as on March 31, 2005, and Rs 950 crore (Rs 9.5 billion) from Rs 1,865.62 crore (Rs 18.66 billion) as on the financial year ended 2004.
On a standalone basis, Wipro's investments in Indian money market and mutual funds stood at Rs 2,713.33 crore (Rs 27.13 billion) as on September 30, 2005, up by Rs 450.57 crore (Rs 4.5 billion) from Rs 2,262.76 crore (Rs 22.63 billion) deposited as on March 31, 2005. This is also an increase of Rs 920.37 crore (Rs 9.2 billion) from Rs 1,792.96 crore (Rs 17.92 billion) invested till the end of financial year ending 2004.
The company had invested Rs 17.25 crore (Rs 172 million) as on September 30, 2005, in overseas funds.
The investment abroad is higher by Rs 1.64 crore (Rs 16.4 million), compared to Rs 15.61 crore (Rs 156.1 million) invested as on March 31, 2005, and up by Rs 4.15 crore (Rs 41.5 million) from Rs 13.1 crore (Rs 131 million).
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