The Hindu : Business : Wipro net at Rs. 357 crores

Online edition of India's National Newspaper
Saturday, Jul 24, 2004

Business

Business

Wipro net at Rs. 357 crores

By Harichandan A. A.

BANGALORE, JULY 23. Driven by strong volumes and robust pricing in its global IT services business, Wipro Technologies, Wipro reported a 73 per cent rise in net profit at Rs. 357 crores year on year for the three months ended June 30, 2004.

Revenues for the quarter were Rs. 1,769 crores, up 48 per cent. Revenue from Global IT Services and Products increased by 45 per cent year to Rs. 1,344 crores.

The quarter had been one where the company has found `pricing power' again, with new customers being asked to pay higher rates, said Vivek Paul, Vice Chairman and President of Wipro Technologies.

Mr. Paul said Wipro's thrust on higher end work and mixed projects helped realise better prices with new customers, though it had been difficult to negotiate higher rates with existing clients.

The company added 35 new accounts, `23 of them from the U.S.,' he said. For the quarter ending September 30, Azim Premji, Wipro's Chairman said, "We expect about $318 million revenue from our Global IT Services business.''

Strong growth

A sequential growth of 8.4 per cent in Wipro Technologies' revenues and expansion in operating margin for the fourth consecutive quarter were the results of sustained volume growth and an improving pricing environment, Mr. Paul said. Growth continued to be broad based — across domains, service lines and geographies, with revenues from European clients recording a 20 per cent sequential growth, he said.

Suresh Senapaty, Wipro's Corporate Executive Vice President (Finance), said, "Better price realisation happened in offshore and onsite projects; an increase in the proportion of revenues from offshore projects; and an increase in IP sales and continued operational improvements.''

Global IT services

Revenue from Global IT Services and Products grew 45 per cent year on year to Rs. 1,344 crores and its profit before income tax increased 89 per cent to Rs. 362 cores. Operating Income to Revenue at 27 per cent increased by 3.4 per cent sequentially and by 6.3 per cent year on year, a company release said. R&D Services contributed 33 per cent of the Revenue of Global IT Services. Enterprise Business contributed 57 per cent and IT enabled services the rest, the release said.

Wipro Consumer Care and Lighting business recorded a revenue of Rs. 105 cores, with profit before tax of Rs. 15.30 crores, contributing 6 per cent of total revenues and 4 per cent of the profit before interest and taxes for the quarter.

Printer friendly page
Send this article to Friends by E-Mail

Business