The Hindu : Business : Wipro profit rises 66 p.c.

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Saturday, Jan 22, 2005

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Business

Wipro profit rises 66 p.c.

By Our Staff Reporter

The Chairman of Wipro, Azim Premji, with the Vice Chairman, Vivek Paul, at a press conference in Bangalore on Friday. — Photo: G. R. N. Somashekar

BANGALORE, JAN. 21. The third largest software services firm, Wipro Limited, has at the end of December 31, 2004, reported a 66 per cent growth in its profit before interest and tax to Rs. 476 crores year-on-year with the quarter revenue at Rs. 2,110 crores, a robust increase of 39 per cent year-on-year.

According to Azim Premji, Chairman of Wipro, the quarter has witnessed a one per cent sequential growth in price realisation for onsite and offshore projects. These coupled with proactive hedging has enabled them to mitigate the negative impact of rupee appreciation and compensation revision on profitability.

Wipro Infotech, in India , Middle East and ASPAC, IT business recorded a revenue growth of 45 per cent over the previous year. Revenues grew 36 per cent and the profit before interest and tax by 24 per cent on a year-on-year basis in the consumer care and lighting business. Looking ahead for the quarter ending March 2005, the revenue from the global IT services is expected to be about Rs. 1,600 crores.

According to Vivek Paul, Vice Chairman, technology infrastructure services and testing services continued their momentum with double digit, resulting in revenues of $352 million, ahead of $347 million. The annualised employee attrition rate has also come down by 12 per cent.

Suresh Senapathy, Corporate Executive Vice President-Finance, said that the operating margin in the global IT business before non-cash charge of one per cent due to expensing of restricted stock units, was 27 per cent, a marginal decline sequentially. The global IT services and products added 26 new clients this quarter.

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