Wipro Q1 net up record 129%

BANGALORE: Wipro Ltd., the Bangalore-based diversified information technology
company, has posted a record net profit of Rs 107.70 crore for the first quarter
of the current financial year (2000-01) ended June 30, 2000. This translates
into a whopping growth of 129 per cent over the corresponding quarter last year
(1999-2000) which saw net profits of Rs 47 crore. Sales and other income for the
quarter under review went up by 47 per cent to Rs 622.10 crore.

The group’s flagship subsidiary and IT services business, Wipro
Technologies, the largest publicly listed software exporter in India and the
first software services provider in the world to have got a SEI-CMM Level 5
certification, saw its sales and other income grow by 82 per cent to Rs.355.50
crore. Its profit before interest and tax grew by 146 per cent to Rs 110.30
crore. Operating margin to sales for the quarter improved to 31 per cent from 23
per cent in the previous comparable period.

Wipro's technology divisions (global R&D and telecom solutions)
contributed 48 per cent of the software revenue while the enterprise divisions
accounted for the balance 52 per cent. During the quarter, the telecom domain
contributed 67 per cent of the revenue from the technology divisions, and
eCommerce contributed 27 per cent of the revenue from the enterprise divisions.
Sales and other income of Wipro Infotech, the IT services and products business,
grew by 26 per cent to Rs 165.90 crore. Profit before interest and tax grew by
206 per cent to Rs 6.40 crore.

Return on average capital employed for the quarter annualized was 61 per cent
for Wipro Ltd. Segment wise return on average capital employed was 109 per cent
for Wipro Technologies, 45 per cent for Wipro Infotech and 75 per cent for Wipro
Consumer Care and Lighting.