Wipro posts 10 % rise in profit

Mumbai, January 20, 2012

W ipro on Friday announced consolidated revenue of Rs.9,997 crore during the third quarter ended December 31, 2011, an increase of 28 per cent over the same period in the previous year. Revenue from IT services operations, which accounted for about three-quarters of the total revenue, increased by 10 per cent to Rs.7,608 crore.



However, operating margin in IT services dropped by 150 basis points from the year-ago period. The company made a consolidated net profit of Rs.1,456.40 crore, an increase of 10.4 per cent over the previous year. The management has recommended a dividend of Rs.2 per share.



Chairman Azim Premji said despite the "uncertain" global environment, the company registered a "surprisingly good" performance in the U.S. market. He said clients "are not arresting investment because they want to increase productivity levels in a volatile and uncertain environment." "Overall, this year looks much better than 2008," Mr. Premji said.



T. K. Kurien, Executive Director and CEO, IT Business, said the "changes" effected in the company in recent times had resulted in "improved customer satisfaction" and greater accountability to client needs. Referring to the attrition level of 14.2 per cent during the last quarter, Mr. Kurien said attrition levels had fallen by nine percentage points in the last few quarters. He said while the crisis in the eurozone could potentially result in lower IT-related spending, the "next big opportunity" for Wipro could come from the inter-section of analytics, mobility and cloud-based technologies, areas in which the company had devoted a "concentrated focus."



Likening the happenings in the eurozone to "a Hindi movie," Mr. Premji said companies in the continent had realised that they "have not yet taken full advantage of the benefits of IT." Wipro, he said, planned to increase the employment of "locals" onsite from the current level of 38 per cent to 50 per cent over the next two or three years. He said this would protect it from the backlash against outsourcing in the advanced countries.


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