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Wipro Q2 profit rises 24% at Rs 1,611 cr

IT services revenues stood at Rs 8,373 cr, EBIT was Rs 1,731 cr for Q2FY13

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Pradeesh Chandran Bangalore
Last Updated : Jan 21 2013 | 5:46 PM IST

Bangalore-based Wipro Ltd has reported a net profit of Rs 1,611 crore for the second quarter ended September 30, 2012 registering a growth of 24 per cent when compared to the corresponding period last year. The revenues of the company for the July-September quarter stood at Rs 10,657 crore reporting an increase of 17 per cent jump as against the same period last year.

The flagship IT service business of the company witnessed a revenue growth of 23 per cent year on year and stood at Rs 8,373 crore. IT Services Earnings Before Interest and Tax (EBIT) was Rs 1,731 crore registering a growth of 27 per cent from a year ago. The operating income to revenue for IT Services was 20.7 per cent for the second quarter of the FY 13.

On dollar terms the IT services revenue of India’s third largest IT service provider stood at $1,541 million, registering YoY increase of 4.6 per cent and a sequential increase of 1.7 per cent.

Azim Premji, Chairman of Wipro, commenting on the results said, “We have chartered a new course for Wipro by demerging our diversified non-IT businesses. I am confident that the demerger will enhance value for all our stakeholders and provide fresh momentum for growth for each of our businesses.”

Going forward, the company has said it expects revenues from IT Services business to be in the range of $1,560 million to $1,590 million for the third quarter ending December 31, 2102.

Billionaire Azim Premji-promoted company added 53 new customers to its kitty during the second quarter fo FY13. IT Services, which contributes to around 79 per cent of the company’s overall revenue, had 140,569 employees as of September 30, 2012, an increase of 2,017 people in the quarter.

T K Kurien, Executive Director and Chief Executive Officer, IT Business, said, “We have delivered revenues in line with our guidance and are continuing to see consistent improvement in our engagement with customers and employees. Consistent with our strategy to drive business transformation at the intersection of cloud, mobility, analytics, and social, we are continuing to investing in our go-to-market organization in order to engage effectively with both business and technology stakeholders.”

The company’s IT products business, which contributes 8 per cent to the revenues, recorded revenues of Rs 899 crore -- a decline of 10 per cent when compared to the same period last year. Operating income to revenue for this segment was 3 per cent for the quarter.

The consumer care and lighting business segment recorded revenue of Rs 1,008 crore for the quarter, registering an increase of 26 per cent year on year. EBIT was Rs 113 crore for the quarter, an increase of 29 per cent from a year ago.

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First Published: Nov 02 2012 | 9:25 AM IST

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