Wipro net up 44 p.c. in Q4

BANGALORE: IT services firm Wipro’s net income grew 44 per cent to $677 million in fourth quarter ended on March 31 2007. The company’s annual revenues crossed $3 billion turnover mark in fiscal 2007, clocking $3.47 billion.

Global IT Services and products revenue was $2.57 billion, representing an increase of 38 per cent over the same period last year.

A company statement said that the company’s enterprise solutions business in Global IT services crossed revenues of $1 billion while its finance solutions business crossed $500 million. The company added on 197 new clients during the year and 44 clients in the fourth quarter.

Azim Premji, chairman of Wipro, commenting on the results said, "All our business segments contributed to the strong growth in revenues and profits during FY2006-07. During the year, we completed strategic acquisitions, expanded local sales footprint, built deeper domain skills and sharpened our account management focus.”

“We enhanced our Global Delivery capabilities through centers in Romania, Brazil and Portugal. Encouraged by our early success, we launched more projects under the Quantum Innovation Umbrella that are focused on creating non-linear growth opportunities, superior delivery structures and new business opportunities,” he added.

The company provided a guidance of $711 revenues for the coming quarter.

Suresh Senapaty, CFO, said, "During the quarter ended March 2007, we delivered revenues of $690.7 million ahead of our guidance of $685 million. Increase in billing rates and improved profitability in our acquisitions and BPO significantly offset adverse impacts of onsite wage hikes and exchange rate movement on profitability.”

“Operating margins of our acquisitions portfolio improved by more than 900 basis points sequentially. We are happy to share that all our acquisitions have reported profits for the quarter ended March 31, 2007. For the full year FY07, we have delivered a margin of 24.3 per cent in our Global IT business, in a narrow range of that of FY05-06, despite significant investments in acquisitions and sales and marketing," added Senapaty

Wipro had 67,818 employees as of March 31, 2007 on its rolls including 50,354 employees in IT Services business and 17,464 employees in BPO business. This represents a net addition of 14,076 people comprised of 12,699 in IT Services business and 1,377 people in BPO business for the year.

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