Wipro Q2 PAT up 16% YoY to Rs 478 cr

Wipro Limited on Tuesday announced its audited results approved by the board of directors for the quarter ended September 30, 2005.

Highlights:
Results for the Quarter ended September 30, 2005

• Global IT services and products revenue was Rs 1,895 crores (Rs 18.95 billion), an increase of 26 per cent year on year.
• Wipro's revenue increased by 27 per cent YoY to Rs 2,507 crores (Rs. 25.07 billion); profit after tax grew by 16 per cent YoY and by 12 per cent sequentially to Rs 478 crores (Rs 4.78 billion).
• Global IT services and products profit before interest and tax or PBIT was Rs 462 crores (Rs 4.62 billion), a growth of 11 per cent sequentially.
• Global IT services and products added 39 new clients in the quarter, including two new clients in BPO services.
• Wipro's India, Middle East and Asia Pacific business unit records 36 per cent growth in PBIT YoY; revenue grew by 32 per cent. The company won a comprehensive contract from Sanmar Group to provide total outsourcing services

Outlook for the Quarter ending December 31, 2005:

Azim Premji, Chairman of Wipro commenting on the results said, "The quarter once again demonstrated the depth of our management and robustness of our processes as we smoothly managed organisational transitions to deliver a solid quarter.

"The global IT business sustained its momentum, recording double-digit volume growth sequentially, resulting in revenues for the quarter being $430.7 million against our guidance of $422 million.

"Our continued success in delivering broad based results positions us well to lead industry growth. Looking ahead, for the quarter ending December 2005, we expect revenues from our global IT services business to be approximately $463 million."

Suresh Senapaty, chief financial officer, said, "We saw robust sequential revenue growth in all our business units, with our finance solutions and technology business delivering sequential double digit growth.

"Our differentiated services  -- technology infrastructure services and testing services – posted double digit sequential growth as well. On the profitability front, we were able to expand our operating margins despite a gross addition of over 5,600 people in our IT services team and lower price realisations. In line with our expectations, our BPO business delivered improved profitability for the quarter."

Wipro has 45,835 employees as of September 30, 2005, which includes 32,856 employees in IT services business and 12,979 employees in the BPO business. This includes a net addition of 4,575 employees in IT services.

During the quarter, Wipro added 39 new clients, including two new clients in BPO services. Wipro continued to build on its strengths in the US with 23 new clients, and further increased its presence in Europe with 10 new clients. This quarter saw Wipro add clients across business lines, testimony to its investment in a broad suite of services and an integrated approach to enhancing client performance. Wins include a global pharmaceutical company, a leading online auction player, and a leading global manufacturer of consumer products. Wipro also won an Orderto-Bill engagement that involves an integrated IT & BPO solution for a data communications major.

Wipro also announced its decision to open a near shore centre in Eastern Europe. The new facility is expected to expand Wipro's language capabilities for voice, transaction processing and L1/L2 support for infrastructure management.