Wipro posts unexpected 14 per cent rise in Q3 net

Wipro Ltd, the country's third-largest IT exporter, beat its own as well as market expectations with an 8 per cent sequential jump in net sales at Rs6,893 crore (Indian GAAP), backed by better project management and cross-currency benefits. Net profit was up 14 per cent at Rs1,162 crore.

In dollar terms, too, Wipro was able to reverse the falling trend in revenue seen since the March 2009 quarter. Its September quarter revenue rose 3 per cent to $1,065 million over the previous quarter.

What has further cheered investors is the management's confidence for the coming quarters. According to the dollar revenue guidance for the December 2009 quarter, the management expects to either maintain the sequential revenue growth rate or even better it to 4.5 per cent. Moreover, this growth is likely to come without sacrificing profit margins.

Forex gains of Rs24 crore due to the cross currency movement contributed to the company's bottomline. Wipro reported a 6 per cent revenue growth to Rs6,917 crore over the year-ago period (10.2 per cent on a sequential basis).

Revenues from IT services, which accounted for 72 per cent of total earnings, was $1,065.2 million - ahead of the company's forecast of $1,035-$1,053 million.

The company expects IT services revenues for the December quarter to be in the range of $1,092 million to $1,113 million, primarily driven by volume growth. The upper end of the revenue forecast at $1,113 million is the highest in the company's history.