Information technology giant Wipro Limited announced the results for the quarter ended September 30. It recorded a 46 per cent growth year on year at Rs 700 crores (Rs 7 billion). Revenues grew by 41 per cent YoY to Rs 3,546 crores (Rs 35.46 billion).
Highlights of the Results
- Wipro Limited Profit After Tax grew by 46% year on year (YoY) to Rs. 7.0 billion (Rs. 700 Crores)
- Total Revenue increased by 41% YoY to Rs. 35.46 billion (Rs. 3,546 Crores)
- Global IT Services & Products Revenue was at Rs. 27.2 billion (Rs. 2,720 Crores), a 44% increase YoY
- Global IT Services & Products Profit before Interest and Tax (PBIT) was at Rs. 6.64 billion (Rs. 664 Crores) and grew by 44% YoY; Operating Margin was at 24.4%, similar to the same period last year
- Global IT Services & Products added 54 new clients in the quarter
- Wipro's India, Middle East & Asia Pac business recorded 57% growth in PBIT YoY. Revenue grew 36% YoY
Outlook for the Quarter ending December 31, 2006
Azim Premji, chairman of Wipro, commenting on the results said "We believe that the focus we have on strategy and execution has continued to deliver robust results for the company. Our IT Services & Products business witnessed strong volume growth and operational improvements during our quarter ended September 30, 2006. Our differentiated Services - Technology Infrastructure Services, Testing Services and Enterprise Application Services - have grown double digits sequentially.
"In addition, our Financial Solutions and Technology, Media, Transportation & Services Vertical demonstrated excellent traction and delivered superior performance. Our Global IT Services & Products business added 54 new clients during our quarter ended September 2006, 11 of which were Global 500 or Fortune 1000 clients.
"Further, our BPO Services business also posted a strong Revenue growth and Operating Margin improvement, reinforcing our confidence that it is moving in the right direction of delivering industry-leading growth rates. Looking ahead, for the quarter ending December 2006, we expect Revenue from our Global IT Services & Products business to be approximately $ 633 million."
Suresh Senapaty, chief financial officer of Wipro, said "During our quarter ended September 30, 2006, our G lobal IT Services & Products Revenue was at $ 589 million, ahead of our guidance of $ 577 million for the quarter. On our margin front, operational improvements and superior BPO Services profitability helped us in significantly offsetting the pressure on profitability arising out of wage increases and noncash charge of Restricted Stock Units issued during the quarter."
Wipro Limited
Total Revenue for the Quarter ended September 30, 2006, was Rs. 35.46 billion, representing a 41% increase YoY. Profit after Tax for the quarter was Rs. 7.0 billion, a n increase of 46% YoY.
Global IT Services and Products
Global IT Services & Products reported Revenue of Rs. 27.2 billion for the Quarter ended September 30, 2006, representing an increase of 44% YoY and PBIT of Rs. 6.64 billion, an increase of 44% YoY.
Operating Margin for the quarter was 24.4%, similar to the corresponding quarter last year. The Technology Business contributed 33.0% of the Revenue of Global IT Services. Enterprise Business contributed 58.6% of Revenue with the balance 8.4% being contributed by Business Process Outsourcing (BPO) Services.
Wipro had 61,179 employees as of September 30, 2006, which includes 45,824 employees in the IT Services & Products business and 15,355 employees in the BPO Services business. The net addition of 5,328 employees in the IT Services business included 605 employees from the completed acquisitions during the quarter.
Wipro Global IT Services and Products business added 54 new clients during the quarter, of which 11 were Global 500 or Fortune 1000 companies, comprised of 53 new clients in the IT Services and Products business (18 new Technology clients and 35 new Enterprise clients) and 1 new client in the BPO Services business.
Wipro TMTS Vertical showed significant traction in Europe during our quarter ended September 30, 2006, which included a contract signed with a leading UK-based Media & Broadcasting firm for custom application work and a multi-million dollar deal with a leading Airline to provide a broad range of services covering infrastructure support, enterprise applications support and custom applications development.
