Wipro net rises 20% to Rs 428 cr in June quarter

Wipro Ltd today reported mixed results for the quarter ended June. While year-on-year numbers were in line with those of other industry leaders, sequential quarter-on-quarter numbers were quite indifferent.

Profits for the quarter were Rs 428 crore, up 20 per cent year-on-year and revenues were Rs 2,262 crore, up 28 per cent year-on-year. Sequentially, profits dipped 1.2 per cent over the previous quarter ending March 2005, and revenues, 2.2 per cent (Indian accounting principles).

Factors that contributed to the dip in profits include the strengthening of the rupee against the dollar during the quarter, and additional spending on US visas and sales and marketing, Wipro said. This set the bottom line back by some Rs 22 crore. Wipro also amortised restricted stock units worth Rs 1.73 crore.

A bulk of them was in Wipro Technologies, the company's flagship business, which exports information technology services. For the quarter ending September, "We expect revenues from Wipro Technologies to be approximately $422 million (Rs 1,835.7 crore at 43.5 rupees to a dollar)," Azim Premji, chairman, Wipro, said.

This will be a 6 per cent sequential growth in the revenues of Wipro Technologies.

The software business, at $398.5 million, exceeded the company's revenue forecast, of $395 million, for the June quarter. Wipro Technologies posted revenues of Rs 1,731.8 crore for the quarter, up 29 per cent year-on-year, and profit before taxes of Rs 420 crore, up 15 per cent.

Sequentially, Wipro Technologies' revenues increased 5.5 per cent and profit before taxes, 1.2 per cent. The business contributed over 77 per cent of Wipro Limited's revenues and 90 per cent of its profit before tax, for the quarter.

During the quarter, Wipro Technologies added 29 new clients. The company added 2,000 heads during the quarter, taking its total staff strength to nearly 42,000.