M&As, new deals push Wipro net up 18%

Better employee utilisation, strategic acquisitions and wins across all business verticals helped Bangalore-based Wipro Limited "" the software to soaps major "" post robust results this quarter.

The company reported a 17.7 per cent increase in net profit at Rs 824 crore for the second quarter ended September 30 of the current financial year over the same period last year.

The top-line too (Indian GAAP consolidated) grew by 35 per cent to touch Rs 4,784 crore during the period.

Sequentially, Wipro's net profit and top-line improved 14 and 12.2 per cent, respectively. The company's operating margin (EBITDA) also improved by 80 basis points this quarter.

Wipro Technologies (the company's global IT services business) contributed Rs 3,249 crore or 68 per cent to the top-line "" a growth rate of 10 per cent over the previous quarter of the previous financial year.

Wage hikes in the range of 12 to 13 per cent paid to employees with effect from August 1, 2007, had an adverse impact of 160 basis points on the operating margin this quarter.

The company's income has been impacted also by the strengthening rupee by around 11 per cent.

Wipro Technologies' revenue numbers appear good when compared with the trailing quarterly growth of Infosys, whose quarter-on-quarter revenue grew by 8.8 per cent (QoQ profit grew a mere 1.9 per cent), and TCS, whose quarter-on-quarter revenue grew by 8.4 per cent (QoQ net profit increased by 4.1 per cent).