Wipro Q2 revenue up 35 pc, PAT Rs 824 cr

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Bangalore, Oct 19: Despite appreciating Rupee hitting the operating margin hard, IT giant Wipro maintained its robust growth with a revenue of Rs 4785 crore, 35 per cent up on year on year basis and a PAT of Rs 824 crore for the second quarter ending September 30.

This was against the revenue of Rs 3546 crore and PAT of Rs 700 crore during the corresponding period last year.

The half yearly revenue rose to Rs 8988 crore and the net profit to Rs 1549 crore.

Announcing the results company CMD Azim Premji said the results demonstrated strong execution by Team Wipro on all fronts like revenue growth, profitability management, large deal wins, inorganic initiatives, geographic expansion, alliances and partnerships.

However, the hardening Rupee hit the Global IT business hard affecting the operating margin by 3.6 per cent. It was minimised to 1.9 per cent with the company taking up various initiatives mainly cost cutting.

Though the revenue growth in terms of dollar was 35 per cent, the hardening rupee resulted in the revenues grow by just 19 per cent on rupee terms.

Company CFO Suresh Senapathy said the due to the Rupee appreciating by 10.5 per cent during the half, Wipro had lost Rs 1500 crore in revenues on annualised basis. Rupee fell from Rs 44 to a Dollar to Rs 40 during the period, he added.

Mr Premji was however unperturbed and said, "looking ahead, for the quarter ending December 2007, we expect our Revenue from our Global IT Services business to be approximately at 905 million dollars, including Revenues of around 60 million dollars from acquisitions." He said the results for the quarter demonstrate strong execution by Team Wipro on all fronts. Revenues from our Global IT Services was at 796.5 million dollars, including Revenues of USD 6.4 million from recently acquired Infocrossing. It was ahead of our guidance of 777 million dollars the company had set during the first quarter. "We saw broad-based growth across Verticals, Services and Geographies," he said.

He said during the quarter, we won some large multi-million dollar deals and the deal pipeline continues to be robust. Building out its theme of benefiting clients through Applied Innovation, Wipro partnered with global industry bodies to launch the first ever global awards to recognize best practices in co-innovation and global sourcing.

Mr Premji said the Global IT Services and Products business has added 59 new clients during the quarter, of which six were Global 500 or Fortune 1000 companies. It comprised of 26 new Technology clients and 33 new Enterprise clients. Global IT Services and Products segment accounted for 68 per cent of the Revenue and 85 per cent of the PBIT for the quarter.

During the quarter, Wipro completed the acquisition of Infocrossing, a US-based provider of IT Infrastructure Management, Enterprise Application and Business Process Outsourcing services through a successful tender offer.

He said the acquisition broadens the Data-center and Mainframe capabilities of Wipro and reinforces its position as an industry leader in the Infrastructure Management space. Infocrossing was also a leader in Platform based solutions in Health Plan&Payer Management and processes over 175 million claims annually for over 90 managed care organizations. The results of the acquisition have been consolidated with effect from September 20, 2007.

Wipro entered into an agreement with Nokia Siemens Networks in October, whereby all Radio Access R and D activities currently performed in Berlin are planned to be provided to Nokia Siemens Networks by Wipro Technologies in the future.

He also announced a strategic partnership with Oki Electric Industry and signed a definitive agreement to acquire Oki Techno Centre of Singapore.


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