India’s third largest information technology outsourcer Wipro Limited reported a 25% jump (year-on-year) in its net profit at Rs908 crore for the first quarter ended June 2008.
Revenues as per Indian GAAP increased by 43% y-o-y to Rs5,967 crore. Revenue from IT Services (in dollar terms) stood at $1067 million, a sequential growth of 3.5% and y-o-y growth of 37%. In rupee terms, revenue was at Rs4,405 crore, translating into a y-o-y growth of 39%.
“During the quarter ended June 2008, we were able to sustain margins in spite of Restricted Stock Units grants. Rate Realization and Utilization improved sequentially by 300 basis points and 50 basis points respectively,” said Suresh Senapaty, CFO, Wipro.
The company had 95,675 employees as of June 30, 2008, which includes 74,838 employees in the IT business unit and 20,837 employees in the BPO business unit.
Wipro added 31 new clients during the recently concluded quarter, of which 4 were Global 500 or Fortune 1000 companies.
”In the backdrop of significant economic uncertainty, our Financial Services and Retail businesses demonstrated their resilience. We had strong growth in our differentiated Service lines like Testing, TIS and BPO,” stated Azim Premji, chairman, Wipro.
The markets reacted negatively to the results on the back of a disappointing guidance given by the company for the next quarter.
“Though the Q1 results were in line with our expectations, the guidance for Q2FY09 is muted, which is a disappointing factor. Moreover, forex flows reported by the company are lower-than-expected,” said Rajiv Mehta, research analyst, India Infoline.