Wipro's IT biz cross $3 bn mark, net up by 42pc

Bangalore, Apr 20: Keeping in tune with the industry growthtrends, IT and consumer products major Wipro Ltd has posted aconsolidated revenue of Rs 15,001 crore for the year ended March 31, a41 per cent jump over last year.

Announcing the annual results company Chairman Azim Premji said the profit after tax grew by 42 per cent at Rs 2942 crore.

The revenues from combined IT busineses crossed a land mark ofthree billion US dollars. The revenue of Wipro's global IT businesstouched Rs 11,095 crore and PBIT grew by 36 per cent at Rs 2794 crore.

Enterprise Solutions Business in Global IT services crossed a landmark one billion dollars and Finance Solutions Business the 500 millionDollar mark.

Revenue from India, Middle East and Asia Pacific business stood atRs 2484 crore a 46 per cent growth over the previous period and thePBIT rose to Rs 214 crore a 47 per cent improvement over the previousyear.

The revenue from consumer products posted a healty growth at Rs818 Crore 36 per cent up from the previous year. The PBIT in thissegment stood at Rs 101 crore, a 25 per cent jump compared to lastfiscal.

The results for the quarter ended March 31, 2007 the sales and otherincome crossed the milestone of one billion Dollars. The revenueincreased by 30 per cent on Year on Year to Rs 4333 crore and PAT grewby 30 per cent at Rs 856 crore. Global IT services and products revenuewas Rs 3048 crore, reflecting a 32 per cent increase. PBIT stood at Rs732 crore.

Commenting on the results Mr Premji said, ''all our businesssegments contributed to the strong growth in revenues and profitsduring the just ended fiscal. During the year we completed strategicacquisitions, expanded local sales foot-print, built deeper domainskills and sharpened our account management focus.

He said the fear of a economic slow down in the US, its majormarket contributing 50 per cent of revenues last year, had no effect onthe company. ''US business remained the way it did last year.

There is no sign of a slowdown yet. The Indian economy is alsobuoyant despite upward trend in interest rates. The hardening of theRupee was anticipated and we have taken enough precautions for that,''he said.

Mr Premji said Wipro had enhanced its Global Delivery capabilities through its centres in Romania, Brazil and Portugal.

''Given the exciting prospects in all our business segments, welook forward to 2007-08 and beyond with excitement'' he said adding''looking ahead, for the quarter ending June we expect the revenue fromour Global IT services business to be approximately 711 milliondollars''.

Company Chief Financial Officer, Suresh Senapathy, said the Board hadrecommended a final cash dividend of Re one per share/ADS. This coupledwith interim dividend of Rs five per share would take total dividend to300 per cent. He said the revenue during the last quarter was aheadmarginally compared to the guidance. Momentum from the company'sdifferentiated services like BPO, Enterprise Application Services andTechnology Infrastructure services continued to be robust.

''Increase in billing rates and improved profitability in ouracquisitions and BPO significantly offset adverse impacts of Onsitewage hikes and exchange rate movement on profitability. Operatingmargins remained narrow and we feel it will continue to be so duringthe current year.

He said the company now had 67,818 employees as on march 31, 2007,which included 50,354 in IT services and 17,464 in BPO business. ''Thisrepresents an addition of 14,076 people,'' he said.

Wipro added 44 new clients during the last quarter which includedseven Fortune 1000 companies. The company had filed 13 patents duringthe fiscal and also filed more than 15 invention disclosures on behalfof its clients in R and D Services. It had bagged IQPC 2007 GlobalExcellence awards including the best Global F and A Excellence awardand Global BPO industry leader award, he said.

The Consumer Care Products saw good growth with Santoor bath soapemerging as the third largest soap brand by value in the country.

Successful new roll outs during the year included Santoor Whitesoap, Santoor hand wash and two perfume variants like Wipro Sweet andHealthy.

Mr Senapathy said during the year the company successfullycompleted the acquisition of Northwest Switches and integration was ontrack. Diapers and CFL grew well, while Furniture business continued togrow. The institutional lighting division also grew well and thisincluded Delhi Metro and Vivekananda Rock Memorial.

Wipro Infrastructure Engineering organic revenues grew by 47 percent and the company had become the number two player globally inHydraulic cylinders from No. 17 three years ago. It acquired HydrautoGroup AB and had a unique global footprint with nine factories acrossthe world, he added.

UNI