Software major Wipro on Friday posted a net profit of Rs 411.70 crore (Rs 4.117 billion) for the second quarter ending September 30, up by 79 per cent over Rs 230.20 crore (Rs 2.302 billion) reported during the same period last year.

The NYSE-listed Wipro posted revenues of Rs 1,978.50 crore (Rs 19.785 billion) for the period July to September 2004, up by 44 per cent over Rs 1,374.50 crore (Rs 13.745 billion) during the second quarter last year.

Highlights

• Revenue for the quarter was Rs 19.8 billion (Rs 1,979 crore), an increase of 44% year on year.
• Profit Before Interest & Tax (PBIT) grew by 88% year on year to Rs 4.7 billion (Rs 465 crore).
• Profit After Tax grew by 79% year on year to Rs 4.1 billion (Rs 412 crore).
• Global IT Services & Products Revenue increased 46% year on year, at Rs 15.0 billion (Rs 1502 crore).
• Global IT Services & Products PBIT was Rs 4.1 billion (Rs 413 crore), an increase of 93% year on year, contributed by volume growth and productivity improvements.
• Global IT Services & Products Operating Margin was 28%, an increase of 1% over the quarter ended June 30, 2004.
• Global IT Services & Products added 34 new clients in the quarter (including 3 in IT Enabled services business).

Outlook for the Quarter ending December 31, 2004

Azim Premji, Chairman of Wipro commenting on the results said: "The strong results clearly demonstrate that Wipro is winning in a market where customers are seeking higher value. Our Global IT Services business delivered strong sequential Revenue growth of 12% and improved Operating Margins for the fifth successive quarter. We continue to benefit from the investments made over the last few years."

"We have good business momentum across our businesses. Coupled with our compelling portfolio of services, this gives us immense confidence on our long term prospects. Looking ahead, for the quarter ending December 2004, we expect our Revenue from our Global IT services business to be approximately $347 million," he added.

Vivek Paul, vice chairman, Wipro, said: "We continue to sustain our growth across all our key verticals and service lines in our Global IT business. Good volume growth and stable pricing environment resulted in revenues of $327 million, ahead of our guidance of $318 million. Excellent execution and continuing focus on improving productivity helped deliver operating margin expansion. In terms of service lines, after a couple of subdued quarters, our business process outsourcing business rebounded strongly with a sequential revenue growth of nearly 20%."