Wipro Q2 net up 46 p.c. to Rs 700 crore

BANGALORE: Wipro Ltd today reported an increase of 46 per cent in its PAT to Rs 700 crore over the corresponding second financial quarter last year.

Total revenue of the Bangalore-based company increased 41 per cent to Rs 3,546 crore YoY. The firm reported its global IT services and products revenue at Rs 2,720 crore, up 44 per cent over the year-ago period. Global IT services and products had added 54 new clients during the second quarter. Wipro's India, Middle East and Asia Pacific business recorded 57 per cent growth in PBIT, while revenue grew 36 per cent YoY.

"We believe that the focus we have on strategy and execution has continued to deliver robust results for the company," commented Azim Premji, chairman of Wipro. "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,” Premji said.

The Wipro chairman further said, “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 Global 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 non-cash charge of Restricted Stock Units issued during the quarter."

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