Wipro Q1 net up 18.37% at Rs 1,580 crore

Wipro on Tuesday reported 18.37 per cent increase in consolidated net profit at Rs 1,580.2 crore (Rs 15.8 billion) for the first quarter ended June 30, 2012.

The company had posted a net profit of Rs 1,334.9 crore (Rs 13.34 billion) in the April-June quarter of last fiscal, Wipro said in a filing to the Bombay Stock Exchange.

The total income from operation during the quarter rose by 24.37 per cent to Rs 10,619.6 crore (Rs 106.19 billion) from Rs 8,538.4 crore (Rs 85.38 billion) in the year-ago period.

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"In today's complex business environment, global corporations are increasingly investing in transformational technology initiatives to improve competitiveness.

"We see this shift as an opportunity for us to lead this change and help customers differentiate in this fast evolving market," Wipro chairman Azim Premji said.

Wipro's IT services revenue, which accounted for 78 per cent of the total revenues, grew 30 per cent year-on-year in rupee terms to Rs 8,314 crore (Rs 83.14 billion).

"IT Services revenue in dollar terms was impacted by $25 million of cross currency impact and was $1,515 million, a year-on-year increase of eight per cent," it said.

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The company had forecasted IT services revenues to be in the range of $1,520 million to $1,550 million for the April-June 2012 quarter.

For the quarter ending September 30, 2012, the company has maintained its revenue outlook to be in the same range, assuming that exchange rates of dollar will be at Rs 54.76.

"We have seen high levels of volatility in currencies globally. We have improved profitability, while continuing to invest for growth," Wipro executive director and chief financial officer Suresh Senapaty said.

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The Indian IT industry is facing challenges in the US and European market given the uncertain economic and political climate.

Earlier this month, Infosys had slashed its revenue growth forecast for the current fiscal year, but Tata Consultancy Services beat expectations with a 38 per cent rise in quarterly net profit.

Wipro said it added 37 new customers during the reported quarter.

Wipro's IT services segment has added 2,632 people during the year, taking the total head count to 1,38,552 as of June 30, 2012.

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"We will continue to build differentiation and invest in technology-driven business transformations for our customers as well as rewarding our talent," Wipro executive director and chief executive officer (IT Business) T K Kurien said.

Revenues from the IT products segment recorded a five per cent decline year-on-year basis to Rs 953 crore ($172 million) for the quarter, it added.

Wipro's consumer care and lighting business segment recorded an increase of 30 per cent in revenues, year-on-year to Rs 980 crore ($176 million) for the year.