Wipro Q1 net up 1.23% at Rs 1,334.9 crore; beats estimates

Mumbai: The country's third largest software exporter Wipro Wednesday reported a growth of 1.23 percent in consolidated net profit for the quarter ended March 31, 2011, to Rs 1,334.9 crore.

Last year, the company had posted a net profit of Rs 1,318.6 crore for the fourth quarter, as per international accounting standards.

Net income from sales during the reporting quarter stood at Rs 8,564 crore, as against Rs 7,236.4 crore in Q1 FY'11, up 18.34 percent.

"We are seeing early signs of positive momentum after the re-organisation. Clients continue to focus on optimising operations, creating new products and getting access to newer markets. We will continue to make investments that bring superior value to our clients as they try to win in this market," Wipro Chairman Azim Premji said in a statement.

IT services, which contributed 75 percent to the company's revenues in Q1, FY'12, stood at USD 1,408 million, a sequential increase of 0.5 percent and a year-on-year increase of 16.9 percent.

The company said it expects its revenues from the IT services business to be in the range of USD 1,436 million to USD 1,464 million for the second quarter ending September 30, 2011.

The IT services division hired 4,105 new people this quarter, taking its total headcount to 1,26,490 employees as of June 30, 2011. It added 49 new customers during the reporting quarter.

"Our investments in client mining are starting to show results, with four customers contributing more than USD 100 million of revenues. We have maintained our operating margins in the current quarter despite one month impact of salary revision," Wipro Executive Director and Chief Financial Officer Suresh Senapaty said.

On a standalone basis, the company has reported a net profit of Rs 1,219.3 crore for the quarter, a growth of 9.84 percent from Rs 1,110 crore in the same period last year.

The company's cash and cash equivalents stood at Rs 5,075.2 crore as of June 30, 2011.

Sales of IT products accounted for 12 percent of total company revenue in Q1 FY'12, at Rs 1,006 crore, a growth of 21 percent year-on-year.

Wipro's consumer care and lighting business recorded revenues of Rs 755 crore in Q1, FY'12, an increase of 18 percent y-o-y and accounting for 9 percent of Wipro's total revenues during the quarter.

PTI