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Wipro net up 30 percent in Q1, projects higher revenue for Q2

Posted on Jul 24 2014 | IANS

Bangalore, July 24 : India's third largest IT firm Wipro Ltd. posted net profit of Rs.2,118 crore (approx USD 352 mn) for 2014-15's first quarter (April-June), registering 30 percent growth year-on-year (YOY) under the Indian accounting standard, while projecting an average higher revenue of USD 1.8 billion from its global IT services business for the second quarter.

In a regulatory filing to the Bombay Stock Exchange (BSE) Thursday, the global software major said its total revenue for the quarter under review increased 14 percent YoY to Rs.11,136 crore.

Under the International Financial Reporting Standard (IFRS), net income rose 30 percent YoY to USD 351 million and gross revenue to USD 1.9 billion, up 14 percent YoY.

Under IFRS and in dollar terms, net income declined 5.4 percent sequentially and total income by 5 percent.

Sequentially, net profit declined two percent from Rs.2,230 crore and total revenue 4.8 percent from Rs.11,700 crore posted in fourth quarter of last fiscal.

Revenue from global IT services is USD 1.74 billion, which is 1.2 percent up sequentially from USD 1.72 billion and 9.6 percent YoY.

In rupee terms, IT services revenue increased 18 percent YoY to Rs.10,510 crore.

The global software major also said revenue from IT services would be in the range of USD 1,770-1,810 million (USD 1.77-1.81 billion, as against USD 1,740 million posted in first quarter of this fiscal.

"We see a significant rise in business confidence in developed markets as well as India. The new government at the Centre has brought about hope and confidence in the minds of all stakeholders through reform pronouncements with fiscal prudence," Wipro chairman Azim Premji said in a statement here.

"Operating margin for the quarter (22.8 percent) was on expected lines, impacted largely due to wage hikes," chief financial officer Suresh Senapaty said on the occasion.

Operating margin declined sequentially from 24.5 percent in fourth quarter of last fiscal though 2.8 percent higher from 20 percent year ago.

"We continue to drive operational efficiency and invest in our strategy," Senapaty added.

The company added 35 new clients during the quarter as against 59 in previous quarter and 28 year ago, taking the total number to 1,022 as against 986 last quarter ago and 946 a year ago.

"We continue to win large deals particularly in the application and infrastructure space, which demonstrate the confidence of clients in our transformational capabilities," chief executive T.K. Kurien said in the statement.

Premji also said he would expect greater economic activity, including investments in India this fiscal.

The IT services division added 1,399 techies during the quarter, taking its headcount to 147,452 from 146,053 quarter ago and 147,281 year ago.

The company announced July 18 acquiring Atco-I-Tex, a subsidiary of the Canada-based Atco Ltd, for USD 195 million and bagging a 10-year outsourcing deal from it (Atco) with projected revenue of USD 112 million per year or USD 1.2 billion by December 2024.

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