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Follow UsBANGALORE, INDIA: IT major Wipro Ltd posted a profit of Rs 854 crore for the quarter ended December 31, 2007, up 11.57 per cent from Rs 765.40 crore posted for the corresponding quarter the previous year.
The company’s total revenues increased by 33 per cent year-on-year to Rs 5303 crore for the reporting quarter.
Revenue in global IT services and products stood at Rs 3616 crore for the third quarter of the current fiscal.
During the quarter, Wipro IT Business won five multi-year, multi-million dollar deals, and global IT services and products added 39 new clients.
IT business in India, Middle-East and the Asia Pacific recorded 49 per cent year-on-year growth in profit before income tax and 39 per cent annual growth in revenues.
"The results for the quarter are satisfying," said Azim Premji, chairman of Wipro Ltd. "We continue to see good momentum in all our businesses. Revenues from our Global IT Services at $ 910.1 million for the quarter, were ahead of our guidance of $905 million."
Challenging times
“Our Financial Services business grew nearly double-digit sequentially during the quarter despite this being challenging times for the sector. We had strong growth in our BPO business and Testing Services. We also had our Retail and Healthcare Verticals growing ahead of our company growth rate. On the operational front we have seen a 200 basis points increase sequentially in the mix of our Revenues from Fixed Price Projects. Our price realization improved during the quarter by about 50 basis points sequentially,” Premji said.
“Our India, Middle East and Asia Pacific IT business won a large Total Outsourcing deal in the Telecom sector, which is representative of the increasing size of deals in the Indian market and of our abilities to offer transformational Solutions to customers. This win clearly indicates the leadership position we enjoy in this segment. Looking ahead, for the quarter ending March 2008, we expect our revenue from our Global IT Services business to be approximately $955 million”, he added.
According to Suresh Senapaty, chief financial officer of Wipro Ltd, “During the quarter ended December 2007, improved realizations and rationalization of bulge mix helped us fully mitigate the pressure on profitability on account of foreign exchange impact. The drop in our Global IT margins by 100 basis points sequentially was primarily on account of our Infocrossing acquisition. We have seen an increase in the number of $50 million clients and now have our first $100 million client.”
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