Mumbai, Oct. 22: Wipro Ltd, the country’s third largest exporter of software services, today surpassed Street estimates with a 28 per cent growth in net profit for the second quarter ended September 30 at Rs 1,932 crore against Rs 1,504 crore in the same period last year.
Analysts were expecting the company to report a net profit of around Rs 1,900 crore.
The Bangalore-based company reported a 250 basis points jump in margins on a sequential basis to 22.5 per cent. Wipro forecast that revenues from the IT services segment during the current quarter would be in the range of $1,660 million-$1,690 million, a growth of 1.77-3.6 per cent on a sequential basis, which is also ahead of estimates.
Registering its highest growth in the last seven quarters, consolidated revenues rose 19 per cent to Rs 10,990.7 crore in the July-September quarter from Rs 9,235 crore in the same quarter of 2012-13.
Wipro said revenues of IT services in constant currency terms jumped 3.2 per cent, its best show over the past seven quarters.
T.K. Kurien, executive director and CEO of Wipro, told newspersons in Bangalore today the company’s strategy of focussing on its top 125 clients yielded results.
He said during the period Wipro was successful in achieving broad-based revenue growth across all industry verticals and geographies.
According to Kurien, Wipro is now undertaking multiple initiatives to drive the productivity of its employees.
Kurien said the telecom segment performed well, while the company saw discretionary spending in the capital market sector in the banking, financial services and insurance (BFSI) vertical.
This came even as banks continued to spend more on their IT budgets.
He said Wipro had more to achieve in insurance where it has a limited presence.
The jump in margins came despite wage hikes. Experts said that this was on account of the rupee depreciation and higher utilisation levels.
“Margins improved despite higher impact of salary increments, as the company improved the utilisation levels during the quarter,” said Dipen Shah, head of private client group research, Kotak Securities.