Big deals push up Wipro profit in Q1

Azim bullish on biz con­fi­dence

The Political and Business Daily - - FRONT PAGE -

IT ser­vices ma­jor Wipro to­day re­ported a 29.5 per cent growth in its con­sol­i­dated net profit at Rs 2,103.2 crore for April-June pe­riod, helped by large deals in the ap­pli­ca­tion and in­fra­struc­ture space.

The city-head­quar­tered firm had posted a net profit of Rs 1,623.3 crore in the year-ago pe­riod, it said in a BSE fil­ing.

Con­sol­i­dated net sales rose by 15.5 per cent to Rs 11,245.5 crore in April-June quar­ter of the cur­rent fis­cal from Rs 9,733.2 crore in the same quar­ter of 2013-14.

The fig­ures are in ac­cor­dance with In­ter­na­tional Fi­nan­cial Re­port­ing Stan­dards (IFRS).

Wipro Chair­man Azim Premji said: "We see a sig­nif­i­cant rise in busi­ness con­fi­dence in de­vel­oped mar­kets as well as In­dia."

The new govern­ment at the Cen­tre has brought about hope and con­fi­dence in the minds of all stake­hold­ers through re­form pro­nounce­ments with fis­cal pru­dence, he added.

In US dol­lars, Wipro re­ported a net profit of $351 mil­lion and rev­enue of $1.9 bil­lion.

Rev­enue from IT Ser­vices stood at $1.74 bil­lion, a quar­ter-on-quar­ter in­crease of 1.2 per cent and year-on-year in­crease of 9.6 per cent. Wipro had guided this to be in the range of $ 1.715 bil­lion$1.755 bil­lion.

For the July-Septem­ber quar­ter, the IT ser­vices rev­enue is fore­cast to be in the range of $1.77 bil­lion$1.81 bil­lion.

"We con­tinue to win large deals par­tic­u­larly in the ap­pli­ca­tion and in­fra­struc­ture space. We re­cently an­nounced our largest ever to­tal out­sourc­ing deal," Wipro CEO T K Kurien said.

These wins demon­strate con­fi­dence of clients in Wipro's trans­for­ma­tional ca­pa­bil­i­ties and re-af­firm their faith in its client en­gage­ment strat­egy, he added.

IT Ser­vices rev­enue in ru­pee terms was Rs 10,510 crore, an in­crease of 18% year-on-year.

The IT ser­vices seg­ment had 147,452 em­ploy­ees as of June 30, 2014 and the firm added 35 new cus­tomers for the quar­ter.

"We con­tinue to drive op­er­a­tional ef­fi­ciency and in­vest in our strat­egy. Op­er­at­ing mar­gins for the quar­ter was on ex­pected lines, im­pacted largely due to wage hikes," Wipro CFO Suresh Se­na­p­aty said.

An­a­lysts said the AprilJune quar­ter has been luke­warm for the coun­try's third largest IT ser­vices firm.

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