Wipro Ltd, India's third largest software services exporter, today reported a net profit of Rs 1,318.6 crore for the first quarter ended June 30, 2010 a growth of 30.5 per cent compared to the corresponding quarter last year. Its total income for the period went up by 16.1 per cent to Rs 7,236 crore over the same period last year. The company has managed to weather the European crisis for the time being.
Its operating profit after interest and exceptional items also shown a year on year growth of 30.6 per cent to Rs 1,409 crore for the first quarter.
Commenting on the results, Azim Premji, chairman, Wipro said, "We are seeing strong demand environment across our industry verticals despite macro challenges. We added the highest number of billable employees ever, in this quarter. Our gidance reflects this momentum - for the quarter ended September 2010, we expect revenues from our IT services business to be in the range of $1,253 million to $1,277 million, a sequential increase of 4.1 per cent to 6.1 per cent."
Non GAAP adjusted earnings per share (excluding the impact of accelerated amortisation of stock based compensation) for the quarter ended June 30, 2010 were Rs 5.37 representing an increase of 29 per cent over the same period last year.
IT services business segment recorded revenue of Rs 5500 crore for the quarter ended June 30, 2010 representing an increase of 14 per cent over the same period last year. EBIT for this segment was Rs 1,350 crore for the quarter ended June 30, 2010, representing an increase of 26 per cent over the same period last year.
The company added 4,854 people during this quarter to take the total staff strength to 1,12,925. IT services added 22 new clients during the quarter.
"We delivered ahead of the top end of our guidance in constant currency with a sequential growth of 4.4 per cent and saw yet another quarter of margin expansion with a 30 basis points increase despite the head winds of wage increase and a decline in price realisation. We have also given restricted stock units and progressions effective July 1, 2010," Suresh Senapathy, executive director and chief financial officer, Wipro said.
The India and West Asia region registered growth across the board and saw some good traction in the government segment. Key wins in the region include the Crime and Criminal Tracking Network (CCTNS) project from the ministry of home affairs and a build and operate contract for State Data Centre Project from Tamil Nadu government. Other wins in the region included a multi-year total outsourcing win at TVS Sundaram and Sons and an IT infrastructure deal from a telecom service provider in West Asia.
In line with the Wipro's globalisation strategy and building on the company's rapid expansion plans in Korea, Wipro announced the opening of the company's new office at Seoul and the appointment of the country head for South Korea.
The consumer care and lighting business segment recorded revenue of Rs 641 crore for the quarter ended June 30, 2010, representing an increase of 23 per cent over the same period last year. EBIT for this segment was Rs 87.9 crore for the quarter, showing an increase of 11 per cent over the same period last year. Its operating income to revenue for this segment was 13.7 per cent for the quarter ended June 30, 2010. ROCE for this segment was 17 per cent on an annualised basis for the quarter compared to 17 per cent for the same period last year.
