Wipro Q1 Profit Up 2.7 Percent at 1,623.3 Crore

Bangalore: IT major Wipro today reported a 2.7 per cent increase in its consolidated net profit at 1,623.3 crore for the first quarter ended June 30, 2013.

The city-headquartered firm had posted a net profit of 1,580.2 crore in the year-ago period.

Wipro’s consolidated net sales rose by 5 per cent to 9,733.2 crore in the April-June quarter this fiscal from 9,247.6 crore in the same quarter of 2012-13 fiscal, it said in a BSE filing.

The firm said it expects revenues for the July-September quarter to be in the range of $ 1.62-1.65 billion.

Commenting on the performance, Wipro Chairman Azim Premji said: “We are seeing higher confidence among other clients on the backdrop of positive macro economic developments, particularly in the U.S..”

In U.S. dollars, the company’s net income from operations rose by 11 per cent to $ 273 million in April-June compared to the same period in the previous year. Revenues rose by 5 per cent to $ 1.64 billion during the same period.

“We are seeing a pick-up in large deal closures, which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organisational agility,” Wipro CEO and Executive Director TK Kurien said.

Wipro’s IT services revenues increased 4.9 per cent year-on-year and 0.2 per cent sequentially to 8,936 crore.

Wipro’s revenue growth lagged its larger peers TCS and Infosys, which reported a 21 per cent and 17 per cent revenue growth, respectively, for the same quarter.

TCS had posted 16 per cent growth in Q1 profit, while for Infosys it was 3.7 per cent.

The company’s shares closed higher by 1.74 per cent at 382.80 apiece on BSE.

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