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Rediff.com  » Business » Wipro Q3 net up 27% at Rs 543 crore

Wipro Q3 net up 27% at Rs 543 crore

January 18, 2006 10:37 IST
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IT major Wipro Limited on Wednesday reported a 27 per cent rise year-on-year in profit after tax to Rs 543 crore (Rs 5.4 billion) for the third quarter ended December 31, 2005, as compared to Rs 426.8 crore (Rs 4.268 billion) for the quarter ended December 31, 2004.

The company's total revenues increased 30% year-on-year to Rs 2,744 crore (Rs 27.44 billion) in this quarter from Rs 2,110 crore (Rs 21.10 billion) during the previous corresponding period.

Wipro's global IT services & products revenue stood at Rs 21.22 crore (Rs 21.2 billion), an increase of 34 per cent y-o-y, contributed primarily by volume growth.

Outlook for the Q4

Wipro Chairman Azim Premji, commenting on the results said, "The results for the quarter signal the next phase in Wipro's growth. Revenues in our global IT business were $473 million -- including $1.3 million attributable to acquisition completed during the quarter -- ahead of our guidance of $463 million."

"Apart from delivering solid revenue growth, we improved our operating margins and increased our share of wallet from key clients, even as we made two strategic acquisitions. We believe that this combination of excellence in operations and strong execution of our strategy is critical to achieve our vision, and we will continue to focus on both in future as well. Looking ahead, for the quarter ending March 31, 2006, we expect revenues from our global IT services business to be approximately $510 million," he added.

Suresh Senapaty, Wipro's chief financial officer, said: "Our differentiated services -- technology infrastructure services, testing and enterprise application services -- delivered double digit revenue growth sequentially, ahead of the overall growth rate. Finance solutions and technology businesses continued their robust performance, delivering yet another quarter of double digit sequential revenue growth."

"Strong volume growth, higher proportion of offshore projects and continued operational improvements helped offset the impact of lower price realisation, lower utilization and the impact of compensation revision for our offshore team, and expand operating margins sequentially," he added.

5,189 employees hired in Q3

The third quarter saw Wipro's staff strength go up with the addition of 5,189 employees. The company had 51,024 employees as of December 31, 2005, which included 36,626 employees in IT Services business and 14,398 employees in BPO business. This included a net addition of 5,189 employees of which 3,770 were in IT Services (including 471 attributable to acquisitions) and 1,419 in BPO business.

Wipro bags 61 new clients

The company also added 61 new clients in the quarter -- its highest ever. One new client was added in BPO services. In terms of verticals, the product engineering services business led the customer addition with 20 new clients. Customer addition was strong in North America, where Wipro added 37 clients during the quarter.

During the quarter, Wipro made two acquisitions -- NewLogic Technologies AG, a European System on Chip design company, and mPower Software Service Inc., a company in the payments processing space.

Wipro also won 36 new projects in its services business during the quarter.

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