Wipro's Q2 net vaults 28% to Rs1,932.1 crore

Wipro Ltd, the country's third-largest IT software, consulting and BPO company, has reported a 28-per cent year-on-year increase in net profits for the quarter ended 30 September 2013, at Rs1,932 crore ($309 million).

Revenues from operations were up 19 per cent at Rs10,992 crore ($1.76 billion) while net income from operations rose 28 per cent to Rs1,932 crore ($309 million).

Adjusted net income from continuing operations at Rs1,932 crore ($309 million) showed an increase of 29 per cent year-on-year.

IT services revenue at $1,631.1 million showed a sequential increase of 2.7 per cent and YoY increase of 5.9 per cent, while in dollar terms the increase was 3.2 per cent sequentially and 7.9 per cent year-on-year.

IT services revenues in rupee terms rose 20 per cent year-on-year to Rs10,068 crore ($1,609 million), crossing the Rs10,000-mark for a quarter for the first time.

IT services earnings before interest and tax (EBIT) increased by 31 per cent to Rs2,264 crore ($362 million). Operating income to revenue ratio for IT services stood at 22.5 per cent for the quarter.

''There are positive indicators on the global economy. Client confidence is on the uptick and we see it reflected in our results,'' Azim Premji, chairman of Wipro, said.

''We achieved a broad based revenue growth across all industry verticals and continue to focus on executing to our strategy,'' added T K Kurien, executive director and chief executive of Wipro.

Wipro, which does not give annual forecasts, said it expected $1.62-1.65 billion in IT service revenue in second quarter.

''Our sustained execution towards increasing operational efficiencies in the business coupled with currency benefits helped offset the impact of wage hikes resulting in strong improvements in operating margins,'' Suresh Senapaty, executive director and chief financial officer of Wipro, said.

Wipro added 45 clients during the second quarter this fiscal taking its total clients to about 1,256. Majority of additions during the quarter came in from the $10 million bracket.

Americas remained the top revenue generator for Wipro followed by Europe, Asia-Pacific and other emerging markets and India and Middle East business.

In terms of verticals, finance solutions led the tally followed by nanufacturing and hitech, energy, natural resources and utilities, retail, consumer goods and transportation, global media and telecom and healthcare, life sciences and services.