Wipro Ltd net profit up 1%, foresees 4.1% revenue growth
31 Oct 2011
Wipro, India's third largest software exporter, today announced a net profit growth of slightly over 1 per cent for the second quarter at Rs1,301 crore on a year-on-year basis, helped by a weaker rupee and growth momentum in IT services. Its net income from sales grew 17.6 per cent to Rs9,094 crore for the same period.
In its guidance for the third quarter, Wipro forecast that third-quarter revenue may climb as much as 4.1 per cent to $1.53 billion from the previous period as it wins more business from existing customers.
Revenue from the IT services business, which accounts for three-fourths of its total revenue, may range between $1.5 billion and $1.53 billion this quarter, the Bangalore-based company said today.
The software provider posted an 18-per cent sales jump and said five customers now contributed more than $100 million each annually – a further indicator that demand for software maintenance and advisory services remains buoyant. Wipro shares were headed for a three-month high on the Bombay Stock Exchange after the announcement.
''We are continuing to see incremental progress in our client mining strategy,'' chief financial officer Suresh Senapaty said. Wipro's biggest customer is now poised to contribute more than $200 million in revenue, he said. The software provider last year reported it had one client with an annual revenue contribution in excess of $100 million in the three months ended 30 September 2010.
Wipro, which provides services such as designing and building software programs, product-engineering and back-office support to companies including BP Plc, William Morrison Supermarkets Plc. and Vodafone Group Plc added 44 new clients to take the total to 930 at the end of the last quarter.
Volume, or the number of man-months workers spend on projects for clients, grew 6 per cent in the three months ended 30 September from the previous period, Senapaty said.
''We have seen growth momentum build up in our IT business with healthy volume growth,'' chairman Azim Premji said in the statement. ''Our focused investment strategy will get the business to a higher growth trajectory.''
