WIPRO net profit rises 4% to Rs2,190 crore

24 Jul 2015

Wipro, India's third-largest IT exporter, has posted a net profit of Rs2,190 crore ($344 million1), a 4-per cent rise from the year ago quarter, helped by higher global IT spending. The company had posted a net profit of Rs 2,103 crore during the comparable period of a year ago.

The company's gross revenues rose 10 per cent to Rs12,240 billion ($1.9 billion) on a year-on-year basis, while IT services segment revenue in rupee terms rose 10 per cent to Rs11,580 crore, the company said in a statement.

''On the run side, deals are getting increasingly competitive and we are focused on increasing the levels of automation, while on the change side, new stakeholders are influencing buying decisions in the digital space," said T K Kurien, member of the Wipro board and CEO.

"On the run side, we continued to win deals which deploy Wipro HOLMESTM, our Artificial Intelligence platform to drive down costs for our customers,'' Kurien added.

''On the change side, we have announced the acquisition of Designit, one of the largest independent global strategic design firms. Designit's design capabilities in synergy with Wipro's scale in technology services will position Wipro uniquely in Digital, as an integrated design and technology player,'' he added.

''In the quarter, we maintained strong cash flow generation while operating margins were, on predictable lines, modestly lower due to employee compensation measures,'' said Jatin Dalal, chief financial officer, Wipro.

The IT services segment had a headcount of 161,789 as of June 30, 2015. The company added 36 new customers during the quarter.

During the quarter, Wipro was selected by one of the largest upstream oil and gas companies in Oman as its IT affiliate to implement an 'Integrated IT Services Contract'.

The five-year engagement aims to improve operational efficiency across the organisation by integrating managed services for help desk, applications and telecom.

The company expects revenues from our IT services business to be in the range of $1,821 million to $1,857 million.