Wipro Net Up 27% in Q3; Expects Q4 IT Revenue at $1.71-1.75 bn - The New Indian Express

Wipro Net Up 27% in Q3; Expects Q4 IT Revenue at $1.71-1.75 bn

Published: 18th January 2014 02:23 AM

Last Updated: 18th January 2014 02:23 AM

Technology major Wipro on Friday posted a 27 per cent jump in net profit, in line with market expectations, for the quarter ended December 31, helped by strong growth in infrastructure services, client spending and improved efficiencies.

It posted a net profit of `2,010 crore in the December quarter against ` 1,589 crore in the year-ago period. Consolidated revenue rose by 18 per cent to `11,330 crore from `9,589 crore.

The company declared a net income of $1678.4 million from IT services, a sequential increase of 2.9% while the net income from continuing operations was $325 million, a 27% increase from the same period last year.

The share price of the company on the Bombay Stock Exchange, however, declined by 3.15% to close at `552.45.

Commenting on the results, Chairman Azim Premji said, “We see optimism amongst clients, especially in the west. Corporations are leveraging technology to reduce operational costs and investing resources in differentiating themselves in the marketplace.”

In the current quarter, an expense of $3 million was incurred for shutting down the company’s computer and server manufacturing operations, Wipro said.

The company also expects IT services revenue to be in the range of $1712-1745 million in the next quarter. This includes revenues from its Opus CMC acquisition which was completed in January.

Suresh Senapaty, CFO said, “Our strategy of ‘standardisation at the core’ is yielding results. Our investments in automation and productivity tools have driven efficiencies and helped us expand margins of IT services by 54 basis points to 23%.”

The company added 42 new customers in Q3 and its IT services workforce stands at 1,46,402 employees.

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