Wipro Q2 Net up 1.24 Percent at 1,300.9 Crore

Monday, 31 October 2011, 04:07 Hrs
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Bangalore: Software exporter Wipro today reported a growth of 1.24 percent in consolidated net profit to Rs 1,300.9 crore for the quarter ended September 30, 2011.

Last year, the company had posted a net profit of Rs 1,284.9 crore for the second quarter, as per international accounting standards. Net income from sales during the reporting quarter stood at Rs 9,094.5 crore, as against Rs 7,730.5 crore in Q2, FY'11, translating into a 17.64 percent increase.

"Macroeconomic sentiments continue to remain uncertain. We have seen growth momentum build up in our IT business, with healthy volume growth. Our focused investment strategy will get the business to a higher growth trajectory," Wipro Chairman Azim Premji said in a statement.

IT services, which contributed 75 percent to the company's revenues in Q2, FY'12, stood at USD 1,472 million, a sequential increase of 4.6 percent and a year on year rise of 15.7 percent. The company said it expects its revenues from the IT services business to be in the range of USD 1,500 million to USD 1,530 million for the third quarter ending December 31, 2011.

The IT services division hired 5,240 new people in the second quarter, taking its total headcount to 1,31,730 employees as of September 30, 2011. It added 44 new customers during the reporting quarter.

"We are continuing to see incremental progress in our client mining strategy, with five customers contributing more than USD 100 million of revenues and our top customer hitting a revenue run rate upward of USD 200 million," Wipro Executive Director and Chief Financial Officer Suresh Senapaty said.

Operating margins were impacted during the quarter by salary increases, he added. On a standalone basis, the company reported a net profit of Rs 1,050.6 crore for the quarter, a decline of 10.36 percent from Rs 1,172.1 crore in the same period last year.

Sales of IT products accounted for 11 percent of total company revenue in Q2, FY'12, at Rs 1,000 crore, a decline of 6 percent YoY.

Wipro's consumer care and lighting business recorded revenues of Rs 800 crore in Q2, FY'12, an increase of 20 percent YoY accounting for 9 percent of Wipro's total revenues during the quarter.
Source: PTI
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