The Hindu : Business : Volume growth drives Wipro’s revenues

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Friday, Jul 20, 2007
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Volume growth drives Wipro’s revenues

Special Correspondent

Net profit rises by 17 p.c. to Rs. 726 cr. in the first quarter; BPO services up 40 p.c.

— PHOTO: G. R. N. SOMASHEKAR

ON COURSE: Azim Premji, Chairman, Wipro, addressing a press conference in Bangalore on Thursday.

BANGALORE: Wipro on Thursday announced a 34 per cent growth in revenues at Rs. 4,203 crore and a 17 per cent rise in net profit at Rs. 726 crore in the first quarter ended June 30, 2007, against Rs. 3,143 crore and Rs. 620 crore, respectively, in the corresponding quarter in the previous year. Recent acquisitions were relatively less affected by U.S. dollar exchange fluctuations during the quarter.

Revenues from global IT services and products in dollar terms went up by 35 per cent to $726.1 million, ahead of the guidance for the quarter.

Wipro Chairman Azim Premji told reporters here that “Our recent acquisitions in Germany, Canada and West Asia will expand market reach and revenue from IT services. Since our IT services need to be competitive, we will grow our facilities in locations such as China, Eastern Europe and parts of Latin America and in Asia like Vietnam. Our growth in revenues was primarily driven by strong volume growth across our business units.”

He expected the growth in BPO services to stay on a growth trajectory as in the previous two years and maintain good profit margins.

“Our BPO services grew by 40 per cent in the last quarter and technology infrastructure services and package implementation by over 50 per cent and testing services by 40 per cent,” Mr. Premji said. Among verticals, the growth was stronger in financial solutions, telecom service providers, manufacturing/tech nology, media and transportation.

Chief Financial Officer Suresh Senapaty said new clients acquired included a major utility company in Europe with a five-year contract for $130 million and a U.S. automotive retail chainOn lower growth in the U.S. market, Mr. Premji said the exchange fluctuation might remain with “the Indian story going strong”. But other markets, including Europe and Japan, would continue to be stronger, balancing the rupee appreciation against the dollar.

PTI reports:

Mr. Premji said for the quarter ending September 30, 2007, the company expected its revenue from its global IT services business to be about $777 million.

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