The Telegraph
Since 1st March, 1999
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Wipro meets earnings forecast

Mumbai, Oct. 17: Wipro today logged a 4 per cent increase in second-quarter net profit at Rs 230 crore against Rs 221 crore same time last year in a scorecard that was just as good as markets expected it to be. The jump in first-half profit was sharper at 20 per cent to Rs 436 crore over the previous year on a 29 per cent rise in sales

The company succeeded in easing pricing pressures — the demand from top clients for lower rates — and reaped the benefits of securing more orders. Most important, the software services major was upbeat on prospects in the quarters ahead, saying it expected revenues to improve due to higher corporate spending.

“Business prospects continue to be promising with volume growth healthy and prices moving in a narrow band,” chairman Azim Premji said. Vice-chairman Vivek Paul said customers showed greater confidence in the company’s end-to-end service model, along with the will to raise spending.

He singled out telecom, which contributed 14 per cent more to revenues last quarter.

Wipro’s reassuring numbers came just a week after that of Infosys, which had also topped market forecasts and said it saw better times ahead. Both companies belied fears of a strong rupee biting into overseas earnings.

Suresh Senapaty, Wipro’s executive vice-president (finance), said there was an improvement in all parameters, including realisations. Revenues from its global IT services for October-December are estimated to rise 8.55 per cent to $241 million against $222 million in the quarter ended September.

Wipro said that it added 35 new customers in the quarter and hired 3,091 employees in IT services, an increase that took its head-count to 24,265 on September 30.

The figures sent the Wipro share rising 3.4 per cent to Rs 1420.80 on BSE. It also triggered renewed buying in other technology stocks.

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