Wipro Q1 net up 25% at Rs 908 crore

Wipro Limited, the $5 billion software to soaps major, has reported a 25 per cent increase in its net profit for the first quarter of the current fiscal as against the corresponding period of last fiscal.  The topline has increased by 43 per cent.

The net profit has smarted up to Rs 908 crore (Rs 9.08 billion)for the first quarter, while the topline has moved to Rs 5,967 crore (Rs 59.67 billion).

The flagship software services exports arm, Wipro Technologies, has reported a topline growth of 39 per cent in YoY terms to Rs 4,405 crore (Rs 44.05 billion). Sequentially it has moved up by 3.5 per cent. The company has said that going forward that this IT services arm will grow by a mere 2 per cent for the second quarter on a sequential basis.

Azim Premji, Chairman, Wipro, commenting on the results said: "We have had another satisfying quarter. Revenues from our IT Services were $1,067 million for the quarter, ahead of our guidance of $1,060 million. In the backdrop of

significant economic uncertainty, our Financial Services and Retail businesses demonstrated their resilience. We had strong growth in our differentiated Service lines like Testing, TIS and BPO. Our strategy of focusing on majro accounts is delivering results with top customers growing ahead of company average. We improved on several of operational parameters during the quarter. Given the environment, we remain cautious in the near-term. Looking ahead, for the quarter ending September 2008, we expect our Revenue from our IT Services business to be approximately $1089 million."

Suresh Senapaty, Chief Financial Officer of Wipro, said: "During the quarter ended June 2008, we were able to sustain margins in spite of Restricted Stock Units grants. Rate Realization and Utilization improved sequentially by 300 basis points and 50 basis points respectively. We have won 7 multi-year multi-million dollar deals and added 31 new customers during the quarter. We added another customer to our $100 million customer list."