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Wipro quarterly earnings rise 27%

Jan. 17: Wipro, the country’s third-largest software services exporter, today reported a 27 per cent rise net profit at Rs 2,010 crore for the third quarter ended December 31, 2013.

Revenues rose 18 per cent to Rs 11,330 crore in the October-December quarter of this fiscal over the year-ago period, the company said in a release.

The company said the net profit of Rs 2,010 crore ($325 million) included a non-recurring expense incurred on terminating the manufacture of desktops, laptops and servers.

Wipro chairman Azim Premji said, “As the global economy is progressing towards stability, we see optimism among clients, especially in the West.”

Wipro’s IT services revenue stood at $1.68 billion, a year-on-year increase of 6.4 per cent. In rupee terms, revenue from IT services rose 20 per cent year-on-year to Rs 10,330 crore.

“During the quarter, our global infrastructure services business grew strongly on revenues,” Wipro chief executive officer T. K. Kurien said.

The company added 42 customers during the third quarter. Its IT services segment had 146,402 employees as on December 31, 2013.

Wipro forecast its revenues in the January-March quarter of 2013-14 to be in the range of $1.71-$1.75 billion.

On the trends in the IT sector, Premji said, “Companies are leveraging technology to reduce operational costs and investing resources in differentiating themselves in the marketplace.”

“Our focus on account management has yielded encouraging results. We continue to execute to our strategy for superior engagement with clients while investing in emerging technologies to drive towards a higher growth trajectory,” Kurien said.

Wipro chief financial officer Suresh Senapaty said the company’s strategy of “standardisation at the core” was yielding results. “Our investments in automation and productivity tools have driven efficiencies and helped us expand margins of IT services by 54 basis points to 23 per cent,” he added.

Wipro results were announced after markets hours. The Wipro stock closed at Rs 552.45 apiece, down 3.15 per cent, on the Bombay Stock Exchange.

ITC show

ITC today posted a 16.25 per cent rise in net profit at Rs 2,385.34 crore for the third quarter ended December 31 after robust sales across its FMCG and agri-business verticals.

The Calcutta-based firm had posted a profit of Rs 2,051.85 crore in the corresponding period a year earlier.

Net sales rose 13.05 per cent to Rs 8,623.11 crore from Rs 7,627.07 crore, ITC said in a statement.

Earnings from the FMCG business, including cigarettes, climbed 20.52 per cent to Rs 2,662.99 crore, while net sales rose to Rs 6,193.89 crore.

 
 
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