Wipro posts 18% rise in net profit to Rs 1,716.4 crore in Q3 2012-13

Infotech Lead India: Wipro has posted 18 percent rise in its net profit to Rs 1,716.4 crore in the third quarter of 2012-13 against Rs 1,456.4 crore in the year ago period.

Consolidated total income of the IT major was up by 10 percent to Rs 10,989.1 crore for the October-December quarter in the current fiscal against Rs 9,965.1 crore in the same period of 2011-12 fiscal.

Wipro chairman Azim Premji

The IT services revenue, which accounted for 78 percent of its revenues, stood at $1.577 billion in the quarter, up 4.8 percent year-on-year and 2.4 percent compared to July-September 2012 quarter.

“While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity,” said Wipro chairman Azim Premji.

Wipro expects its revenues from IT services business to be in the range of $1.585 billion to $1.625 billion for the quarter ended March 31, 2013.

“We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition. We continue to make investments in our go to market organisation and technology themes to be a strategic partner to our customers,” said Wipro IT business executive director and CEO TK Kurien.

The IT services segment had 142,905 employees as of December 31, 2012, an increase of 2,336 people in the quarter. It added 50 new customers in the reported quarter.

Dipen Shah, head of PCG (Private Client Group) Research, Kotak Securities, said: “The 1 percent de-growth in volumes was disappointing, though productivity increases were significant. Increased efficiency in run-the-business projects has resulted in improved efficiencies though at the cost of volume growth, we understand. Margins were in line with expectations. The volume performance is much lower than that reported by peers. We expect the stock to attract better valuations once volume growth starts improving.”

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