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Wipro Q2 revenues up 35 p.c.

— PHOTO: G. R. N. SOMASHEKAR

PRESTIGIOUS DEALS: Azim Premji, Chairman, Wipro, at a press conference in Bangalore on Friday.

BANGALORE: Wipro has reported a 35 per cent year-on-year revenues for the second quarter ended September 30, 2007 to Rs. 4,785 crore. The net profit stood at Rs. 824 crore against Rs. 700 crore in the corresponding quarter last year, an increase of 18 per cent.

The company has announced an interim dividend of Rs. 2 per share. Wipro’s Global IT services and products revenue grew only 9.7 per cent sequentially to $ 796.5 million.

Wipro’s Chairman Azim Premji told reporters “Several large overseas deals were won during the quarter, including one with a total contract value of $ 275 million and another for $ 160 million over multiple years. Our partnership with SAP and acquisition of the U.S. IT services company, Infocrossing, whose revenues added to consolidated revenues from August, added up to global revenues of $ 796.5 million, ahead of our guidance of $ 777 million for the quarter”.

High-growth sectors included finance solutions, telecom service providers, testing and BPO, with Europe and Japan recording 15 and 26 per cent consequential growth, overcoming the fall in revenue from dollar rate fluctuation, ‘which affected our margins by almost Rs. 1,500 crore’, Chief Financial Officer, Suresh Senapaty said.

Overall profitably was expected to be maintained during the second half of the year with a good offshore mix from cost-effective overseas locations in Europe, Mexico, China and Brazil, and a facility in Atlanta in the U.S., where local talent was being recruited straight from the campuses. The agreement with Nokia Siemens Networks concluded earlier this month would provide access to engineers in Germany.

Responding to questions, Mr. Premji remarked, “While the impact of the U.S. sub-prime was felt, only one per cent of our U.S. clients are directly involved in mortgage business; other clients are investment bankers less affected by the crisis.

Despite the current slow-down, I personally feel good business will continue to come from the U.S. market. Our acquisition of a Singapore-based electric products company should improve our penetration of the Far Eastern market’.

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