Wipro today reported 17.4 per cent increase in net profit to Rs 1,004 crore for the third quarter ended December 31, 2008, as against a net of Rs 854 crore for the corresponding quarter of last fiscal. Revenues were up 25 per cent to Rs 6,618 crore.
The flagship IT services business showed an year on year growth of 31 per cent to Rs 5,079 crore, marginally above its guidance. However, the company has stated that its fourth quarter revenue from IT services will be dropping to $1045 million from the third quarter revenues of $1126 million.
Azim Premji, chairman of Wipro, commenting on the results said : "We are living in tough times; the macro-economic challenges are significant and impacting businesses across segments. However, recessions do not last, resilient companies do. I am confident Wiproites are resilient to withstand the near term challenges posed by an uncertain environment and come out stronger than ever."
The operating profit showed a growth of 26 per cent YoY as it added 31 new clients during the third quarter. Wipro made a one-time provision in respect of receivables of a large customer which impacted its margins by 60 basis points. Excluding this one-time impact, it was able to expand margins by 10 basis points.
Added Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro : "The IT services revenues were ahead of the guidance as measured in exchange rates prevailing as on September 30, 2008. Our price realization improved sequentially in constant currency through higher productivity, while absorbing impact of lower working days during the quarter. We improved our offshore mix and significantly increased our mix of revenues from Fixed Price Projects."
Shares of Wipro were trading at Rs 221.15 a share, down 2.94 per cent at 12.15 hours in a weak Mumbai market.
