Wipro consolidated Q2 net up 9.75% y-o-y

Wipro today reported 9.75% growth in consolidated net profit at Rs 12,849 million for the second quarter ended September 30.

The company had a net profit of Rs 11,707 million in the September quarter of the previous fiscal (2009-10), Wipro said in a filing to the Bombay Stock Exchange.

The total income has increased from Rs 70,349 million for the quarter ended Sept. 30, 2009 to Rs 78,727 million for the quarter ended Sept. 30, 2010, representing a rise of 12%.

Azim Premji, Chairman of Wipro, commenting on the results said, ``We saw strong momentum in demand as customers tried to catch up w ith the under-investment in IT in the previous y ears. We continue to enhance our investments in Transformational Capabilities, Client Partners and Domain Solutions. While the macro-economic environment continues to remain uncertain, there is higher degree of confidence at the micro level. For the quarter ended December 31, 2010, we expect Revenues from our IT Services business to be in the range of $1,317 million to $1,34 3 million, a sequential increase of 3.5% to 5.5%.``
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said, ``We saw a strong volume growth of 6.6% driven by higher offshore mix. The Operating Margins for IT Services declined during the quarter due to the impact of employee progressions, Restricted Stock Units grants and lower foreign exchange realizations.``
Highlights:

> IT Services Revenues were Rs. 57.4 7 billion (USD 1.29 billion), representing an increase of 15% over the same period last year.

> IT Services Earnings Before Interest and Tax (EBIT) was Rs.12.75 billion (USD 286 million), representing an increase of 7% over the same period last y ear.

> IT Services recorded a 6.6% volume grow th in the quarter.

> IT Services added 29 new clients in the quarter.

Net addition of 2,975 employees in the current quarter in IT Services.

> IT Products recorded sequential grow th in Revenues of 29% in the current quarter.

> Consumer Care and Lighting Revenue grew 20% over the same period last year and EBIT grew 13%.
Shares of Wipro gained Rs 6.75, or 1.46%, to trade at Rs 469.75. The total volume of shares traded was 128,805 at the BSE (Thursday).