Wipro net up 45% in first quarter
The leading IT firm posts Rs 620.4 cr profit for the quarter ending June 30.india Updated: Jul 19, 2006 14:54 IST
Wipro Limited on Wednesday reported a 45 per cent jump in net profit year-on-year at Rs 620 crore in the first quarter as it continued to ride the outsourcing boom, beating its global IT services revenue guidance.
Revenues for the April-June quarter of 2006-07 increased by 39 per cent to Rs 3,143 crore compared to the same period last fiscal. Revenue from the New York Stock Exchange-listed firm's global IT services business was USD 539.3 million (Rs 2,425 crore), ahead of its guidance of $533 million.
Company Chairman Azim Premji told a media conference the external environment remains buoyant as the company sees offshoring at the centre-stage of IT strategy of global corporations.
"In these exciting times, we are well-positioned to benefit from our diversified service portfolio and deep industry expertise", he said. "Looking ahead, for the quarter ending September 2006, we expect revenue from our global IT services business to be approximately $577 million".
Wipro added 62 new customers, including around 20 from recent acquisitions, during the quarter, which also saw the company taking on board about 2,400 employees on a net basis.
The company said global IT services and products revenue grew 42 per cent to Rs 2,451 crore, while the India, Middle East and Asia business and Wipro Consumer Care and Lighting business recorded 35 per cent and 30 per cent revenue growth year-on-year.
Wipro's Chief Financial Officer Suresh Senapaty said on the margin front, improved realisations, higher utilisation, continued improvements in BPO profitability helped partially offset additional investments in sales and marketing and acquisition-related pressures on profitability".