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Wipro's Q3 net up 19 p.c. at Rs. 274 crores

By Our Staff Reporter

BANGALORE, JAN. 21. Wipro Technologies has reported a net profit of Rs. 274 crores in the quarter ended December 31, 2003, a 19 per cent increase year-on-year and sequentially as well.

The company, handling "global IT services and products,'' continued its dominance over the group, accounting for 75 per cent of the revenue and 88 per cent of profit before taxes, a sequential increase of one per cent. The company's multinational telecom clients' IT spending was finally back after a gap of three years, prompting the newly appointed Vice Chairman, Vivek Paul, to say customers had bet right on Wipro's global delivery model, here on Wednesday. The quarter was "one of the best ever'' for closing large deals, he said. The EPS for the quarter was Rs. 30.89, up 7.6 per cent year on year and nearly 64 per cent sequentially.

Revenues were at Rs. 1521 crores, up 37 per cent year on year and 10.6 per cent sequentially. Azim Premji, Chairman, Wipro, repeated what he had said at the end of the previous quarter, sounding more confident, "sustained volume coupled with stable pricing environment'' were responsible for posting the highest ever quarterly profits.

Global IT services and product revenues increased by 41 per cent year on year to Rs. 1147 crores, a 12.7 per cent sequential increase. Operating margins were at 22 per cent, a sequential increase of one per cent, but still 6 per cent down on margins for the same quarter last year. The company added 24 new clients in the quarter — eight in R & D services, 14 in enterprise services and two for IT enabled services. The company made a net addition of 2872 people in the quarter, including 1908 in IT services and 964 in ITES, taking the total to 27,137.

Wipro Infotech, another group company handling IT services and products in West Asia and APac, reported third quarter revenues of Rs 240 crore, up 28 per cent year on year and 14.3 per cent sequentially. Profits before taxes were Rs 16.1 crore, a 14 per cent sequential increase.

Wipro Consumer Care and Lighting, which makes toilet soaps, lighting bulbs, tubes and so on, reported revenues of Rs. 94.90 crores, a 7.6 per cent sequential increase.

The profit before taxe was Rs. 14.10 crores, a 2.9 per cent sequential increase.

In the quarter, 54 per cent of Wipro's revenues came from the U.S., 23 per cent from India and 23 per cent from the "rest of the world,'' a company release said. Revenues from the U.S. region have increased by 60 per cent year on year, for the quarter and as much sequentially.

Wipro Spectramind, the group's call centre business, and Wipro Nervewire, which showed a Rs. 10 crore loss during the three months to September 30 last, have been included under "global IT services and products,'' the company's release said. Separate figures were not available.

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