Another IT biggie, Wipro disclosed its second quarter results on Wednesday. The company's net profit is up 12.83% at Rs 700 crore from Rs 620.4 crore, quarter-on-quarter. Its revenues are also up 12.84% at Rs 3546 crore from Rs 3,142.5 crore.
Wipro's global IT revenues also saw an upward movement of 10.99% from Rs 2450.5 crore to Rs 2720 crore. The net profit margin stood at 19.74% and global IT operating profit margin at 24.4%.
CFO of Wipro, Suresh Senapaty views Q2 as a satisfying quarter as, according to him, the volume growth has been good in terms of 7.9% and the company also had a little uptick in terms of blended prices.
"We had an overall revenue growth at Wipro limited of 41% and 46% on the net income basis. And if one looks at the global IT services business, it has grown pretty well," he says.
President-Enterprise Solutions at Wipro, Sudip Banerjee is also pleased by the company's acquisition performance and with the margins from the acquisitions. That, according ot him, has helped the company in showing a robust performance.
"Both the inorganic piece added to the organic piece has lead to our overall performance being where it is, which is 9.3% sequential growth in dollar terms and 11% sequential growth in rupee terms," he says.
President-Financial Solutions at Wipro, Girish Paranjpe echoes the same words for the financial services side. "We continue to grow robustly. I think this is the eighth quarter that we have had a 50% year-on-year growth and if I look at the CAGR, it is also above 10% since a long time now," he says.
Explaining the surprise element in the company's BPO business margins, President of Wipro BPO, TK Kurien says there are a couple of reasons behind it. Since the past five quarters, the company has been increasing its margin sequentially every quarter.
"About a year ago, we put in a couple of measures in our topline to change the mix of business that we sell. On the operating cost line, we focused clearly on efficiency and increase in our utilisation rates, which have been steadily going up," he says. "So as long as you get higher realisation in the topline you are able to reduce cost, as well increase operating margins," he adds.
Global IT practices, which include the company's infrastructure practice, testing practice and enterprise package implementation practice, have all grown double-digit sequentially says President-IT Practices at Wipro, Suresh Vaswani. "In infrastructure and testing services, we continue to be leaders in the market and have grown 70% YoY here," he says.
The company's total outsourcing business, which was launched last quarter, has had two wins in the global market this quarter; one from US consumer products company and the other one from a utility company based in UK, informs Vaswani.
"The domestic business, Wipro Infotech has also done well, we've grown 36% YoY, 48% in terms of services, which is roughly twice the rate of market growth here. We've good increase in profitability at 57%, he says.
"So all in all it has been a good quarter across global IT practices across total outsourcing and Wipro Infotech," he concludes.
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