Wipro's Q3 net up 18% at Rs 1,716.4 crore

Country's third largest software services firm Wipro on Friday reported 18 per cent rise in its consolidated net profit to Rs 1,716.4 crore (Rs 17.16 billion) for the third quarter ended December 31.

The Bengaluru-based company had posted a net profit of Rs 1,456.4 crore (Rs 14.56 billion) in the year-ago period, it said in a filing to the Bombay Stock Exchange.

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Consolidated total income of the IT major was up by 10 per cent to Rs 10,989.1 crore (Rs 109.89 billion) for the October-December quarter in the current fiscal against Rs 9,965.1 crore (Rs 99.65 billion) in the same period of 2011-12 fiscal.

The IT services revenue, which accounted for 78 per cent of its revenues, stood at $1.577 billion in the reported quarter, up 4.8 per cent year-on-year and 2.4 per cent compared to July-September 2012 quarter.

In rupee terms, it stood at Rs 8,602 crore (Rs 86.02 billion).

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"In constant currency, IT services revenue in dollar terms was $1.571 billion, within our guidance range of $1.560 billion to $1.590 billion," Wipro said in a statement.

"While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity," Wipro Chairman Azim Premji said.

Wipro expects its revenues from IT services business to be in the range of $1.585 billion to $1.625 billion for the quarter ended March 31, 2013.

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"We have seen broad based growth in the quarter with all our verticals growing sequentially.

"Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition.

"We continue to make investments in our go to market organisation and technology themes to be a strategic partner to our customers," Wipro IT Business Executive Director and CEO T K Kurien said.

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The IT services segment had 1,42,905 employees as of December 31, 2012, an increase of 2,336 people in the quarter.

It added 50 new customers in the reported quarter.      

"We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management," Wipro's Executive Director and CFO Suresh Senapaty said.

Its IT products segment recorded revenue of Rs 997 crore (Rs 9.97 billion) for the quarter, a year-on-year increase of 11 per cent, while consumer care and lighting business segment recorded revenue of Rs 1,028 crore (Rs 10.28 billion), a growth of 17 per cent year-on-year.

Both businesses contribute about nine per cent of its total revenue.

In November last year, the company had announced demerger of its non-IT businesses like Consumer Care & Lighting into a new company to focus exclusively on information technology.