Wipro net up 25 percent, cautious in the near-term

July 18th, 2008 - 12:48 pm ICT by IANS  

Bangalore, July 18 (IANS) Wipro Ltd remains cautious in the near-term on revenue guidance from its combined IT services despite a healthy topline and bottomline growth in the first quarter (April-June) of this fiscal (2008-09) over the same period last fiscal. “Given the environment, we remain cautious in the near-term. Looking ahead, we expect revenue from IT services business to be about $1.09 billion by the end of second quarter (July-September) of this fiscal,” Wipro chairman Azim H. Premji told reporters here Friday.

The IT revenue for this quarter (Q2) is projected to be 27 percent higher year-on-year (YoY) and two percent sequentially over the first quarter, which was $1.07 billion, marginally ahead of the guidance of $1.06 billion given in April.

India’s third largest IT bellwether posted net profit of Rs.9.08 billion for the quarter under review (Q1), registering 25 percent growth over same quarter last fiscal at Rs.7.26 billion under the Indian accounting standards.

Similarly, consolidated revenue increased to Rs.59.67 billion during the quarter under review (Q1), posting 43 percent year-on-year (YoY) growth over the same quarter last fiscal at Rs.41.79 billion, under the Indian accounting standards.

As per the American accounting standard, net income rose to $190 million, representing an increase of 15 percent YoY. Similarly, consolidated income rose to $1.39 billion, which is 43 percent higher YoY.

“Our financial services and retail businesses demonstrated resilience despite looming economic uncertainty. We also had strong growth in differentiated services lines such as testing and business process outsourcing,” Premji said.

Chief financial officer Suresh Senapaty said the company was able to sustain margins during the quarter despite restricted stock unit grants.

“Rate realisation and utilisation improved sequentially by 300 basis points and 50 basis points respectively. We have also won seven multi-year, multi-million dollar deals,” Senapaty noted.

The IT services business added 31 new clients, including one with $100 million business spread over multiple years.

IT products posted 53 percent growth YoY at Rs.7.46 billion as against Rs.5.18 billion in the same quarter a year ago.

Wipro’s Consumer Care and Lighting business posted a record growth of 119 percent at Rs.5.13 billion as against Rs.2.74 billion in the same period last fiscal.

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