Wipro Limited, India’s third largest software exporter, on Friday posted an 18-per cent increase in its profit after tax for the second quarter ended September 30 at Rs 824 crores as against Rs 744.8 crores in the corresponding quarter in the last fiscal. However, the strong rupee dented the company’s margins from IT services and products.
Announcing the company’s financial results for the second quarter, Wipro chairman Azim Premji said revenues grew to Rs 4,785 crores, which is an increase of 35 per cent from the year-ago period. Global IT services and product revenues in dollar terms was $796.5 million. In rupee terms, revenue stood at Rs 3,249 crores.
"The results for the quarter demonstrate strong execution by Team Wipro on all fronts. Revenues from our global IT services are at $796.5 million for the quarter, including revenues of $6.4 million from Infocrossing were ahead of our guidance of $777 million," said Mr Premji. "On the profitability front, we not only impacted offshore salary increase but also expanded operating margins by 80 basis points," the chairman added.
However, Wipro executive president and chief financial officer Suresh Senapathy admitted that the company has experienced the impact of an appreciating rupee, with revenues for the first half being hit by Rs 1,500 crores on an annualised basis. Operating margins from IT services declined to 22 per cent in the quarter under review from 26 per cent in the year-ago period.
Wipro Consumer Care and Lighting (WCCL) registered a growth of 79 per cent in profit at Rs 44 crores and 84 per cent growth in revenue at Rs 372 crores, including income from recently acquired Unza. WCCL president Vineet Agarwal said the company’s low calorie sweetner is doing well in Andhra Pradesh and it will decide on extending it to the rest of the country soon.
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