Despite wage hikes, an appreciating rupee, and fewer working days in the quarter nibbling at its net profit margins, the soaps to IT major, Wipro recorded a consolidated net profit (Indian GAAP figures) of Rs 854 crore for the third quarter ended December 31, 2007 -- a 11.6% growth over the corresponding quarter last financial year. The company attributed the growth in profit to addition of new clients and improvement in price realisation.
The consolidated revenue for the quarter went up 33.5% to Rs 5,303 crore when compared with the same period last financial year. On a sequential basis, the net profit of the company went up 4% while consolidated revenue increased 11%.
"The results for the quarter are satisfying. We continue to see good momentum in all our businesses. Revenues from our global IT services at $910.1 million were ahead of our guidance ($905 million). Our financial services business grew nearly double digit sequentially during the quarter despite this challenging times for the sector," said Azim Premji, chairman, Wipro.
On the operational front, the company saw a 200 basis points increase sequentially in the mix of revenues from fixed price projects. "Our price realisation improved during the quarter by about 50 basis points sequentially. We had strong growth in our BPO business and testing services. Our top 10 clients grew at a healthy rate during the quarter," he added.
Chief financial officer Suresh Senapathy said improved realisation and rationalisation of bulge mix helped Wipro in fully mitigating the pressure on profitability on account of foreign exchange impact. The drop in the global IT margins by 100 basis points sequentially was attributed, primarily to the Infocrossing acquisition. The company has seen an increase in the number $50 million clients and now has its first $100 million client.
During the quarter, Wipro’s IT business won five multi-year multi-million dollar deals. The company’s India, Middle East and APAC IT business recorded 49% YoY growth in PBIT and 39% YoY growth in revenues (Rs 971.6 crore). Wipro Consumer Care and Lighting business revenue (Rs 434.7 crore) grew 107% YoY and PBIT grew 99% YoY. It crossed Rs 400 crore in revenue per quarter.
The company added 39 new clients during the quarter of which nine were technology clients with the rest 30 being enterprise clients. The number of employees as of December 31, 2007, was 79,832. It includes 59,925 employees in the IT services and product business and 19,907 in the BPO services business. The company added 2,389 employees in the IT services and products business during the quarter.
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