Wipro Q3 net up 41 p.c. to Rs 765 cr

BANGALORE: Wipro Ltd. today posted an increase of 40.82 per cent in net profit at Rs 7654 million for the third quarter ended December 31, 2006, from Rs 5435 million for the corresponding quarter the previous year.

The total revenue of the company increased by 45.01 per cent to Rs 3,9790 million for the third quarter ended December 31, from Rs 2,7439 million in the year-ago quarter.

Commenting on the results, Azim Premji, chairman of the company, said, “We have had another satisfying quarter. Our global IT business delivered good volume growth primarily driven by robust performance of our energy and utilities vertical, technology infrastructure services and enterprise application services. Continuing their good momentum, our financial services and retail businesses delivered more than 50% YOY growth. Manufacturing vertical and Europe geography posted growth-rates ahead of the company average”.

Suresh Senapaty, chief financial officer of Wipro, said, “During the quarter ended December 2006, our Global IT Services & Products Revenue was $ 640.5 million, which was ahead of our guidance of $ 633 million for the quarter. On the margin front, operational improvements and improved profitability in our BPO business and acquisitions portfolio helped us in largely offsetting the pressure on profitability arising out of wage increases and rupee appreciation."

Wipro had 66,176 employees as of December 31, 2006, which included 49,313 employees in its IT Services and Products business and 16,863 employees in BPO Services business. The net addition in IT Services and Products business was 3,489 employees and 1,508 employees in the BPO Services business.

The company's Global IT Services and Products business added 37 new clients during the quarter, of which eight were Global 500 or Fortune 1000 companies, comprised 13 new Technology clients and 24 new Enterprise clients.

On the operations front Wipro brought down its attrition rates in both the IT and BPO businesses. It was among the first few organizations globally to be assessed at maturity level 5 on the new CMMi V 1.2 model, which was released in September 2006, Wipro said in a statement.

Looking ahead, for the quarter ending March 2007, Wipro expects revenue from Global IT Services & Products business to be approximately $685 million.

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