Bangalore-based soap to IT services major Wipro Ltd reported a net profit of Rs 1,716 crores for the third quarter of FY13 ended on December 31, 2012, registering a y-o-y growth of 18% when compared to the corresponding period last year. The total revenues of the billionaire Azim Premji promoted company stood at Rs 11,025 crores an increase of 10% when compared to the corresponding quarter last year.
The flagship IT business which contributes around 78% of total revenues stood at Rs 8,602 crores for the October-December period witnessing a y-o-y growth of 13%. In dollar terms the IT services revenues stood at $1,577 million, a sequential increase of 2.4% and y-o-y increase of 4.8%. The company also said that the non-GAAP constant currency IT Services revenue in dollar terms was $1,571 million. Earlier for the third quarter the company had given a guidance in the range of $1,560 million to $1,590 million.
IT Services Earnings Before Interest and Tax (EBIT) was Rs 1,792 crores an increase of 13% y-o-y. Operating income to revenue for IT Services was 20.8% for the quarter, up 0.1% sequentially. The company also said that the IT services business had around 10 customers contributing more than $100 million in revenues during the quarter.
Commenting on the company’s performance, Chairman of Wipro, Azim Premji, in a press release said: “While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity.”
The company also declared an interim dividend of Rs 2 per share. Going forward for the fourth quarter ending March 31, 20o13 the company expects its IT services to be in the range of $1,585 million to $1,625 million.
T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – “We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition. We continue to make investments in our go to market organization and technology themes to be a strategic partner to our customers.”
The IT Services business of the company added 2,336 people during the third quarter taking the total headcount to around 142,905 employees as of December 31, 2012. During the quarter Wipro added 50 new customers into its IT services business.
The IT products business which contributes 9% of the total revenue recorded revenues of Rs 997 crores for the quarter ended December 31, 2012, a y-o-y increase of 11%. EBIT for product business was Rs 23.9 crores for the quarter.
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management. We commend and welcome the circular implementing the recommendation of the Rangachary Committee, which has dealt with the tax disputes the industry has been facing over the years.”
The Consumer Care and Lighting business which contributes 9% of total revenues and 7% of operating income for the quarter ended December 31, 2012. The business recorded revenues of around Rs 1,028 crores for the quarter, registering a y-o-y growth of 17%. Operating income to revenue for this segment was 14% for the quarter.
During the quarter the company also signed a definitive agreement to acquire 100% shareholding of the L.D. Waxson Group, a Singapore-based FMCG company for an all cash consideration of about $144 million.
On the Bombay Stock Exchange (BSE), shares of Wipro had ended at Rs 431, up 2.63% from the preious day's close.