Wipro’s Q2 net profit up 20% at Rs 1,932.1 crore
Bangalore – Wipro Ltd, India’s third largest software services exporter, Tuesday reported a 20 percent rise in consolidated net profit at Rs 1,932.1 crore for the second quarter ended September 30, aided by currency depreciation and an uptick in client spending.
The city-headquartered firm had posted a net profit of Rs 1,610.6 crore in the year-ago period, it said in a BSE filing.
Consolidated revenues in the July-September quarter this fiscal rose by 19 percent to Rs 11,331.9 crore from Rs 9,528 crore in the same quarter of 2012-13 fiscal.
Commenting on the performance, Wipro Chairman Azim Premji said: “There are positive indicators on the global economy. Client confidence is on the uptick and we see it reflected in our results.”
In US dollars, Wipro’s net profit stood at USD 309 million in the second quarter this fiscal, while consolidated revenues were at USD 1.76 billion during the quarter.
“We achieved a broad based revenue growth across all industry verticals and continue to focus on executing to our strategy,” Wipro CEO T K Kurien said.
Its IT services revenue rose 5.9 percent year-on-year to USD 1.63 billion, whereas sequential revenue growth stood at 2.7 percent. In rupee terms, IT Services revenues stood at Rs 10,068 crore in the quarter under review.
Wipro, which does not give annual forecasts, had guided to USD 1.62-1.65 billion IT service revenue in second quarter.
“Our sustained execution towards increasing operational efficiencies in the business coupled with currency benefits helped offset the impact of wage hikes resulting in strong improvements in operating margins,” Wipro Ltd CFO Suresh Senapaty said.
On outlook for October-December quarter, Wipro said: “We expect revenues from our IT Services business to be in the range of USD 1.66-1.69 billion.”
Shares of Wipro today closed at Rs 514.90 apiece, up 1.67 percent from its previous close at BSE.
Wipro added 45 clients during the second quarter this fiscal taking its total clients to about 1,256. Majority of additions came in from the USD 10 million bracket during the quarter.
Geography-wise, Americas was the top revenue generator followed by Europe, Asia-Pacific & other emerging markets and India & Middle East business.
In terms of verticals, Finance Solutions led the tally followed by Manufacturing & Hitech, Energy, Natural Resources & Utilities, Retail, Consumer Goods & Transportation, Global Media & Telecom and Healthcare, Life Sciences & Services.
On employee front, Wipro said its IT Services segment had 147,216 employees as of September 30, 2013 against 147,281 in the April-June quarter this fiscal.
The firm said: “IT Products segment delivered revenue of USD 150 million for the quarter, a Y-o-Y increase of 4 percent.”