Wipro – India’s third largest IT services exporter – on Friday beat street forecasts with a 17.85% growth in consolidated net profit for the third quarter ending December 31, 2012.
The company posted net profit of Rs 1716.4 crore as compared to Rs 1456.4 crore in the corresponding period a year ago. Sequentially, profit grew 6.5%.
The company's consolidated revenue grew 10.27% to Rs 10,989 crore from Rs 9965 crore a year ago.
Wipro's IT services business posted revenue of $1577 billion, a growth of 2.4% sequentially and 4.8% compared to the year-ago period. In rupee terms, revenue grew 13% year-on-year to Rs 8602 crore.
The IT services arm posted earnings before interest and tax (EBIT) of Rs 1792 crore ($327 million), a 13% increase year-on-year. The company said the operating income to revenue margin for IT services was 20.8% for the quarter, an increase of 0.1% sequentially.
Wipro's IT Services arm contributed to 78% of total revenue and 92% of operating income for the quarter ended December, the company said.
“We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition,” said T K Kurien, Executive Director and Chief Executive Officer, IT Business. The IT business added 50 new customers during the quarter.
“We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management,” said Suresh Senapaty, Executive Director and Chief Financial Officer of Wipro.
The company said that it expects revenues from IT services business to be in the range of $1,585 million to $1,625 million for the quarter ending March 31.
Shares of Wipro were trading at Rs 414.25, down by 3.91% on the BSE, as of 9.55 am on Friday.
Wipro's Q3 net up 18pc to Rs 1,716.4 cr
(PTI): Wipro Q3 net up 18%; softer guidance pulls scrip down 8%
Bangalore, Jan 18 (PTI) Country's third largest software services firm Wipro today beat market expectations by posting 18 per cent gain in