Bangalore, Oct. 19: Wipro has posted a 16 per cent rise in net profit at Rs 478 crore during July-September 2005, following an increase in technology outsourcing by its clients in Europe.

The company’s revenue (consolidated) rose 27 per cent year-on-year to Rs 2,507 crore during the second quarter of 2005-06. Its revenues from global IT services and products increased 26 per cent to Rs 1,890 crore ($430.7 million) compared with Rs 1,502 crore ($346 million) during the corresponding previous period.

The global IT services business accounted for 76 per cent of Wipro’s revenue and 88 per cent of the profit before income tax (PBIT) during the second quarter.

The customer base grew with the addition of 39 clients (global IT services and products) and two for BPO services. Of the new clients, 23 are from the US and 10 from Europe.

Wipro chairman Azim Premji said: “In terms of financial performance, all our major business segments recorded robust growth rates in revenues. The revenue achieved in our global IT business at $430.7 million was ahead of our guidance of $422 million.

“The IT services business continued to witness a broad-based growth across verticals, geographies and service lines. Our financial solutions business delivered its fourth consecutive quarter of double-digit growth. Differentiated services such as testing and technology infrastructure management continue to rise ahead of the overall growth rate.”

IT business in India, West Asia and Asia Pacific recorded a revenue growth of 32 per cent and PBIT growth of 36 per cent.

“Looking ahead, we expect revenues from our global IT services business to be approximately $463 million for the next quarter. We exited the reporting quarter with a strong tailwind of business momentum. The challenge we have is to sustain this and build upon it,” Premji said.

Wipro’s clients in the US contributed 63 per cent of its total revenues, followed by Europe at 32 per cent and Japan at 4 per cent. Europe posted a strong quarter with a 48 per cent year-on-year and 11 per cent sequential growth.

Suresh Senapaty, Wipro’s chief financial officer, said: “We saw robust revenue growth in all our business units, with finance solutions and technology business delivering sequential double-digit growth.”