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Wipro’s 5% PAT disappoints markets

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CIOL Bureau
New Update

BANGALORE: Wipro Ltd was hammered today at the bourses following a mere 5 per cent rise in PAT (according to reports under US GAAP). Wipro was trading at Rs 884 after it recovered from a fall of Rs 100 in the early morning trades. The scrip opened at Rs 938 on BSE today and the market sneezed the moment Wipro quarterly results were announced.

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Wipro posted a profit after tax of Rs 178.1 crore (US GAAP norms) for the quarter ended June 30, 2003 an increase of over 5% on the profits for the corresponding quarter ended June 30, 2002.

Reporting its revenues under the Indian GAAP, Wipro said that for the quarter ended June 30, 2003, PAT grew by 43% to Rs. 206 cr. Revenue for the quarter was Rs. 1198 cr, an increase of 29% year on year. This includes its Lighting and Consumer Care businesses.

The IT businesses (Wipro Technologies and Wipro Infotech) saw a revenue of Rs 1085 crore for the quarter. Wipro now includes revenues Spectramind and Wipro Healthcare IT into its Global IT Services and Products business.

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Global IT Services & Products (excluding Wipro Nervewire), which has been reported separately grew its revenue by 45% over revenue for corresponding quarter last year to Rs. 913.6 crore and PBIT increased by 4% to Rs 202.5 crore.

Operating margin to revenue was 22.2%, a decline of 8.7% year on year and 2.3% sequentially. The decline was primarily due to lower price realization, and higher Selling, General and Administrative costs, partially offset by increased utilization of professionals.

R&D Services contributed 32% of the revenue of Wipro Technologies. Enterprise Solutions contributed 59% of Revenues with the balance 9% being contributed by IT Enabled services. Wipro NerveWire recorded Revenue of Rs 11.9 crore and loss of Rs 10.5 crore for the quarter.

Wipro added 38 new customers comprising 15 customers in R&D services, 13 customers in Enterprise services, 2 in IT Enabled services and 8 customers in Wipro Nervewire.

Wipro Infotech, its India, Middle East & Asia Pacific IT Services & Products business, recorded Revenues of Rs 160.2 crore and Profit before Interest and Tax of Rs 9.1 crore for the quarter. Services business grew by 25% year on year, contributing to 37% of the total Revenues this quarter.

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